Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Nov. 02, 2019 | Dec. 04, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 2, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38291 | |
Entity Registrant Name | STITCH FIX, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-5026540 | |
Entity Address, Address Line One | 1 Montgomery Street | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94104 | |
City Area Code | 415 | |
Local Phone Number | 882-7765 | |
Title of 12(b) Security | Class A common stock, par value $0.00002 per share | |
Trading Symbol | SFIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001576942 | |
Current Fiscal Year End Date | --08-01 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 55,340,765 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,385,917 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 151,779 | $ 170,932 |
Short-term investments | 145,504 | 143,276 |
Inventory, net | 148,502 | 118,216 |
Prepaid expenses and other current assets | 39,702 | 49,980 |
Total current assets | 485,487 | 482,404 |
Long-term investments | 90,532 | 53,372 |
Property and equipment, net | 65,369 | 54,888 |
Operating lease right-of-use assets | 128,717 | 0 |
Deferred tax assets | 23,865 | 22,175 |
Other long-term assets | 3,358 | 3,227 |
Total assets | 797,328 | 616,066 |
Current liabilities: | ||
Accounts payable | 112,161 | 90,883 |
Operating lease liabilities | 23,042 | 0 |
Accrued liabilities | 86,249 | 69,734 |
Gift card liability | 6,879 | 7,233 |
Deferred revenue | 11,976 | 11,997 |
Other current liabilities | 2,587 | 2,784 |
Total current liabilities | 242,894 | 182,631 |
Operating lease liabilities, net of current portion | 131,694 | 0 |
Deferred rent, net of current portion | 0 | 24,439 |
Other long-term liabilities | 14,126 | 12,996 |
Total liabilities | 388,714 | 220,066 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 290,720 | 279,511 |
Accumulated other comprehensive income | 1,396 | (187) |
Retained earnings | 116,496 | 116,674 |
Total stockholders’ equity | 408,614 | 396,000 |
Total liabilities and stockholders’ equity | 797,328 | 616,066 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 1 | 1 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Nov. 02, 2019 | Aug. 03, 2019 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00002 | $ 0.00002 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 55,207,531 | 54,551,240 |
Common stock, shares outstanding (in shares) | 55,207,531 | 54,551,240 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00002 | $ 0.00002 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 46,501,115 | 46,846,240 |
Common stock, shares outstanding (in shares) | 46,501,115 | 46,846,240 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Income Statement [Abstract] | ||
Revenue, net | $ 444,815 | $ 366,236 |
Cost of goods sold | 243,513 | 201,068 |
Gross profit | 201,302 | 165,168 |
Selling, general, and administrative expenses | 201,142 | 154,271 |
Operating income | 160 | 10,897 |
Interest (income) expense | (1,653) | (1,399) |
Other (income) expense, net | 834 | (120) |
Income before income taxes | 979 | 12,416 |
Provision for income taxes | 1,157 | 1,738 |
Net income (loss) | (178) | 10,678 |
Other comprehensive income (loss): | ||
Change in unrealized gain (loss) on available-for-sale securities, net of tax | (172) | (82) |
Foreign currency translation | 1,755 | 26 |
Total other comprehensive income (loss), net of tax | 1,583 | (56) |
Comprehensive income | 1,405 | 10,622 |
Net income (loss) attributable to common stockholders: | ||
Basic | (178) | 10,664 |
Diluted | $ (178) | $ 10,665 |
Earnings (loss) per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0 | $ 0.11 |
Diluted (in dollars per share) | $ 0 | $ 0.10 |
Weighted-average shares used to compute earnings (loss) per share attributable to common stockholders: | ||
Basic (in shares) | 101,557,546 | 98,965,274 |
Diluted (in shares) | 101,557,546 | 104,539,452 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Stockholders' equity, beginning balance (in shares) at Jul. 28, 2018 | 98,799,861 | ||||
Stockholders' equity, beginning balance at Jul. 28, 2018 | $ 315,072 | $ 2 | $ 235,312 | $ 0 | $ 79,758 |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options (in shares) | 578,107 | ||||
Issuance of common stock upon exercise of stock options | 2,000 | 2,000 | |||
Issuance of restricted stock units, net of tax withholdings (in shares) | 56,257 | ||||
Issuance of restricted stock units, net of tax withholdings | (1,363) | (1,363) | |||
Vesting of early exercised options | 90 | 90 | |||
Stock-based compensation | 7,047 | 7,047 | |||
Net income (loss) | 10,678 | 10,678 | |||
Other comprehensive loss, net of tax | (56) | (56) | |||
Stockholders' equity, ending balance (in shares) at Oct. 27, 2018 | 99,434,225 | ||||
Stockholders' equity, ending balance at Oct. 27, 2018 | 333,503 | $ 2 | 243,086 | (56) | 90,471 |
Stockholders' equity, beginning balance (in shares) at Aug. 03, 2019 | 101,397,480 | ||||
Stockholders' equity, beginning balance at Aug. 03, 2019 | 396,000 | $ 2 | 279,511 | (187) | 116,674 |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options (in shares) | 122,668 | ||||
Issuance of common stock upon exercise of stock options | 518 | 518 | |||
Stock-based compensation | 12,903 | 12,903 | |||
Net income (loss) | (178) | (178) | |||
Other comprehensive loss, net of tax | 1,583 | 1,583 | |||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings (in shares) | 188,498 | ||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | (2,212) | (2,212) | 0 | 0 | |
Stockholders' equity, ending balance (in shares) at Nov. 02, 2019 | 101,708,646 | ||||
Stockholders' equity, ending balance at Nov. 02, 2019 | $ 408,614 | $ 2 | $ 290,720 | $ 1,396 | $ 116,496 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ (178) | $ 10,678 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | (1,960) | (1,061) |
Inventory reserves | 1,801 | 1,563 |
Stock-based compensation expense | 12,126 | 6,637 |
Depreciation, amortization, and accretion | 4,652 | 3,175 |
Other | 13 | 0 |
Change in operating assets and liabilities: | ||
Inventory | (31,837) | (23,172) |
Prepaid expenses and other assets | 2,973 | 1,252 |
Operating lease right-of-use assets and liabilities | 272 | 0 |
Accounts payable | 21,721 | 26,008 |
Accrued liabilities | 16,170 | 24,360 |
Deferred revenue | (25) | 2,532 |
Gift card liability | (354) | (141) |
Other liabilities | 2,150 | (865) |
Net cash provided by operating activities | 27,524 | 50,966 |
Cash Flows from Investing Activities | ||
Purchases of property and equipment | (7,502) | (6,985) |
Purchases of securities available-for-sale | (67,535) | (169,095) |
Sales of securities available-for-sale | 5,306 | 302 |
Maturities of securities available-for-sale | 23,210 | 0 |
Net cash used in investing activities | (46,521) | (175,778) |
Cash Flows from Financing Activities | ||
Proceeds from the exercise of stock options, net | 518 | 2,000 |
Payments for tax withholding related to vesting of restricted stock units | (2,212) | (1,363) |
Net cash provided by (used in) financing activities | (1,694) | 637 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (20,691) | (124,175) |
Effect of exchange rate changes on cash | 1,538 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 170,932 | 310,366 |
Cash, cash equivalents, and restricted cash at end of period | 151,779 | 186,191 |
Components of Cash, Cash Equivalents, and Restricted Cash | ||
Total cash, cash equivalents, and restricted cash | 151,779 | 186,191 |
Supplemental Disclosure | ||
Cash paid for income taxes | 7 | 42 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | 731 | 224 |
Capitalized stock-based compensation | 773 | 410 |
Vesting of early exercised options | 0 | 90 |
Leasehold improvements paid by landlord | $ 7,406 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Nov. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Stitch Fix, Inc. (“we,” “our,” “us” or “the Company”) delivers one-to-one personalization to our clients through the combination of data science and human judgment. Our stylists hand select items from a broad range of merchandise. Stylists pair their own judgment with our analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to each client’s needs. We call each of these unique shipments a Fix. After receiving a Fix, our clients purchase the items they want to keep and return the other items. We are incorporated in Delaware and have operations in the United States and the United Kingdom. Initial Public Offering On November 16, 2017, we completed an initial public offering (“IPO”). In connection with the IPO, we authorized two new classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock and has no expiration date. The Class B common stock automatically converts to Class A common stock upon transfers or any sale. In our IPO, we issued and sold 8,000,000 shares of our Class A common stock at a public offering price of $15.00 per share. We received $110.4 million in net proceeds after deducting $6.2 million of underwriting discounts and $3.4 million in offering costs . Upon the closing of the IPO, all of the then outstanding shares of common stock were reclassified into Class B common stock, all of the outstanding shares of convertible preferred stock automatically converted into 59,511,055 shares of Class B common stock, and all of the outstanding preferred stock warrants were automatically exercised into 1,066,225 shares of Class B common stock. Subsequent to the closing of the IPO, there were no shares of preferred stock or preferred stock warrants outstanding. In December 2017, we issued an additional 1,175,557 shares of Class A common stock at a price of $15.00 per share following the underwriters’ exercise of their option to purchase additional shares and received $16.7 million in net proceeds after deducting underwriting discounts and expenses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Nov. 02, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ending August 1, 2020 (“ 2020 ”), and August 3, 2019 (“ 2019 ”), consist of 52 weeks and 53 weeks, respectively. The unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending August 1, 2020 , or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended August 3, 2019 , included in the Company’s Annual Report on Form 10-K filed with the SEC on October 2, 2019 (“2019 Annual Report”). Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in our condensed consolidated financial statements and accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, leases, and revenue recognition. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. Restricted Cash Restricted cash represented cash balances held in segregated accounts collateralizing letters of credit for our leased properties at October 27, 2018 . Short-Term and Long-Term Investments The Company’s short-term and long-term investments have been classified and accounted for as available-for-sale securities. We determine the appropriate classification of our investments at the time of purchase and reevaluate the classification at each balance sheet date. Available-for-sale securities with maturities of 12 months or less are classified as short-term and available-for-sale securities with maturities greater than 12 months are classified as long-term. The Company’s available-for-sale securities are carried at fair value, with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive income (“AOCI”) in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary, which are reported in earnings in the current period, if applicable. The cost of securities sold is based upon the specific identification method. Foreign Currency The functional currency of our international subsidiary is the local currency. For that subsidiary, we translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’ equity. Net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are recorded in other income, net in the condensed consolidated statements of operations and comprehensive income. Revenue Recognition We generate revenue primarily from the sale of merchandise in a Fix and, to a lesser extent, from direct purchases. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix to be delivered on a specified date. Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable upfront styling fee before the Fix is shipped. As an alternative to the styling fee, we offer select clients the option to purchase a Style Pass. Style Pass clients pay a nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a discount to clients who purchase all of the items in the Fix. We recognize revenue through the following steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Both our styling fee and Style Pass arrangements consist of one performance obligation, which is the option to purchase merchandise. The upfront styling fee is not a performance obligation as the styling activity is not distinct within the context of the contract. Similarly, the right to receive multiple options under Style Pass does not provide the customer with material stand-alone value and therefore does not give rise to a separate performance obligation. Both the upfront styling fee and Style Pass annual fee are included in deferred revenue until the performance obligation is satisfied when the client exercises his or her option to purchase merchandise (i.e., upon checkout of a Fix) or when the option(s) to purchase merchandise expire(s). Revenue is recognized when control of the promised goods is transferred to the client. For a Fix, control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. For a direct purchase, control is transferred when the item is shipped to the client. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. All shipping and handling costs are accounted for as fulfillment costs in cost of goods sold and as selling, general, and administrative expense (“SG&A”), respectively, and are therefore not evaluated as a separate performance obligation. Discounts are recorded as a reduction to revenue when the order is accepted. We record a refund reserve based on our historical refund patterns. Our refund reserve, which is included in accrued liabilities in the condensed consolidated balance sheets, was $2.5 million and $3.1 million as of November 2, 2019 , and August 3, 2019 , respectively. The Company has four types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, and (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used. We sell gift cards to clients and establish a liability based upon the face value of such gift cards. We reduce the liability and recognize revenue upon usage of the gift card. If a gift card is not used, we will recognize estimated gift card breakage revenue proportionately to customer usage of gift cards over the expected gift card usage period, subject to requirements to remit balances to governmental agencies. All commissions paid to third parties upon issuance of gift cards are recognized in SG&A as incurred, as on average, gift cards are used within a one-year period. Similarly, referral credits that are considered incremental costs of obtaining a contract with a customer are recognized in SG&A when issued, as on average, referral credits are used within a one-year period. Contractual liabilities included in deferred revenue, gift card liability, and other current liabilities were $12.0 million , $6.9 million , and $2.6 million , respectively, at November 2, 2019 , and $12.0 million , $7.2 million , and $1.6 million , respectively, at August 3, 2019 . During the three months ended November 2, 2019 , the Company recognized $10.9 million , $1.4 million , and $0.5 million of revenue included in deferred revenue, gift card liability, and other current liabilities at August 3, 2019 . Deferred revenue related to upfront styling fees totaled $9.6 million as of November 2, 2019 , and $9.6 million as of August 3, 2019 . Deferred revenue related to Style Pass annual fees totaled $2.3 million as of November 2, 2019 , and $2.3 million as of August 3, 2019 . The Company expects deferred revenue for upfront styling fees and Style Pass annual fees to be recognized within one year. On average, gift card liability and other current liabilities are also recognized within one year. Concentration of Credit Risks We are subject to concentrations of credit risk principally from cash and cash equivalents and investment securities. The majority of our cash is held by three financial institutions within the United States. Our cash balances held by these institutions may exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. No client accounted for greater than 10% of total revenue, net for the three months ended November 2, 2019 , and October 27, 2018 , respectively. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard requires entities to use a financial instrument impairment model based on expected losses, known as the current expected credit loss model, rather than incurred losses. Under the new guidance, an entity recognizes an allowance for estimated credit losses upon recognition of the financial instrument. We expect to adopt this standard in our first fiscal quarter of 2021. We are currently evaluating the impact that this standard will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard is effective beginning in our first fiscal quarter of 2021 on a prospective or retrospective basis, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to Accounting Standards Codification (“ASC”) 840. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Presentation of leases within the consolidated statements of operations and comprehensive income and consolidated statements of cash flow is generally consistent with prior periods presented under ASC 840. However, this standard resulted in a substantial increase in our long-term assets and liabilities on our consolidated balance sheet. We adopted this standard on August 4, 2019, on a modified retrospective basis through a cumulative-effect adjustment of zero to opening retained earnings. We also elected the package of practical expedients to leases that commenced before the effective date whereby we elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. Upon adoption of ASU 2016-02, we did not record right-of-use assets or lease liabilities for leases with an initial term of 12 months or less. Payments on those leases will be recognized on a straight-line basis through the consolidated statements of operations and comprehensive income over the lease term. We also elected to combine lease and non-lease components on new or modified leases after adoption. Upon adoption on August 4, 2019, we recorded $133.0 million in right-of-use assets, net of $25.7 million previously recorded as deferred rent on our consolidated balance sheets. We also recorded $22.0 million in current operating lease liabilities and $136.7 million in operating lease liabilities, net of current portion. In June 2018, the FASB issued ASU No. 2018-07 , Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). Under ASU 2018-07, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. We adopted this standard in the first quarter of fiscal year 2020. The standard did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amended the existing FASB Accounting Standards Codification. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services and also provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (“modified retrospective method”). We adopted the standard in the first quarter of 2019 under the modified retrospective approach. Under the new standard, we recognize estimated gift card breakage revenue proportionately to customer gift card usage over the expected gift card usage period rather than waiting until the likelihood of redemption becomes remote. Further, we recognize revenue related to exchanges upon shipment by us, rather than upon receipt by the customer. In the first quarter of 2019, the Company recorded a cumulative catch-up adjustment resulting in an increase to opening retained earnings, net of tax, of $0.4 million , comprised of the impact of $0.3 million from the change in revenue recognition related to gift cards and $0.1 million from the recognition of exchanges upon shipment. The impact to net revenue for the three months ended October 27, 2018, was an increase of $0.5 million as a result of adopting the standard. In October 2016, the FASB issued ASU No. 2016-16 , Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which amends existing guidance on the recognition of current and deferred income tax impacts for intra-entity asset transfers other than inventory. We adopted the standard in the first quarter of 2019 under the modified retrospective approach. As a result, a cumulative adjustment of $0.4 million |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We disclose and recognize the fair value of our assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes three levels of the fair value hierarchy as follows: Level 1 : Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 : Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 : Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. Our financial instruments consist of cash and cash equivalents, short-term and long-term investments, accounts payable, and accrued liabilities. At November 2, 2019 , and August 3, 2019 , the carrying values of cash and cash equivalents, accounts payable, and accrued liabilities approximated fair value due to their short-term maturities. The following table sets forth the amortized cost, gross unrealized gains, gross unrealized losses and fair values of our short-term and long-term investments accounted for as available-for-sale securities as of November 2, 2019 : November 2, 2019 August 3, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial Assets: Investments: U.S. Treasury securities $ 70,429 $ 155 $ (6 ) $ 70,578 $ 49,807 $ 100 $ — $ 49,907 Commercial paper 35,851 — — 35,851 29,761 — — 29,761 Asset-backed securities 47,103 181 — 47,284 42,587 145 — 42,732 Corporate bonds 82,025 298 — 82,323 73,969 279 — 74,248 Total $ 235,408 $ 634 $ (6 ) $ 236,036 $ 196,124 $ 524 $ — $ 196,648 The following table sets forth the fair value of available-for-sale securities by contractual maturity as of November 2, 2019 : November 2, 2019 August 3, 2019 (in thousands) One Year or Less Over One Year Through Five Years Over Five Years Total One Year or Less Over One Year Through Five Years Over Five Years Total Financial Assets: Investments: U.S. Treasury securities $ 38,979 $ 31,599 $ — $ 70,578 $ 44,772 $ 5,135 $ — $ 49,907 Commercial paper 35,851 — — 35,851 29,761 — — 29,761 Asset-backed securities 5,422 41,862 — 47,284 5,412 37,320 — 42,732 Corporate bonds 65,252 17,071 — 82,323 63,331 10,917 — 74,248 Total $ 145,504 $ 90,532 $ — $ 236,036 $ 143,276 $ 53,372 $ — $ 196,648 The following table sets forth our cash equivalents, and short-term and long-term investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis based on the fair value hierarchy as of November 2, 2019 : November 2, 2019 August 3, 2019 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 204 $ — $ — $ 204 $ 6,427 $ — $ — $ 6,427 Commercial paper — — — — — 11,970 — 11,970 Investments: U.S. Treasury securities 70,578 — — 70,578 49,907 — — 49,907 Commercial paper — 35,851 — 35,851 — 29,761 — 29,761 Asset-backed securities — 47,284 — 47,284 — 42,732 — 42,732 Corporate bonds — 82,323 — 82,323 — 74,248 — 74,248 Total $ 70,782 $ 165,458 $ — $ 236,240 $ 56,334 $ 158,711 $ — $ 215,045 There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 for the three months ended November 2, 2019 , and October 27, 2018 |
Leases
Leases | 3 Months Ended |
Nov. 02, 2019 | |
Leases [Abstract] | |
Leases | Leases On August 4, 2019, we adopted ASU 2016-02. Upon adoption, we recognized operating lease right-of-use assets and operating lease liabilities of $133.0 million and $158.7 million , respectively. As part of this adoption, we elected to not record operating lease right-of-use assets or operating lease liabilities for leases with an initial term of 12 months or less and to combine lease and non-lease components on new or modified leases into a single lease component. Our leasing portfolio includes various lease arrangements for our corporate offices and fulfillment centers. Such leases generally have original lease terms between five and eight years , and often include one or more options to renew. We include options to extend in the lease term if they are reasonably certain of being exercised. We do not currently consider our renewal options to be reasonably certain. We do not have residual value guarantees associated with our leases. Short-term lease payments were not material for the three months ended November 2, 2019 . The following table includes the components of our rent expense recorded in selling, general, and administrative expense: For the Three Months Ended (in thousands) November 2, 2019 Operating lease cost $ 7,213 Variable lease costs 1,509 Sublease income (374 ) Total $ 8,348 Certain leases contain variable payments, which are expensed as incurred and not included in our operating lease right-of-use assets and operating lease liabilities. These amounts primarily include payments for maintenance and utilities on our office and fulfillment center leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments at lease commencement. The Company calculates the present value of its leases using an estimated incremental borrowing rate, which requires judgment. Our incremental borrowing rate is determined for each lease using a peer group of companies with similar credit profiles, adjusted for the impact of collateralization and lease term. The following is a schedule by year of the maturities of operating lease liabilities with original terms in excess of one year, as of November 2, 2019 : (in thousands) November 2, 2019 Remainder of 2020 $ 21,965 2021 29,573 2022 27,315 2023 25,062 2024 20,899 2025 16,362 Thereafter 40,326 Total undiscounted future minimum lease payments 181,502 Less imputed interest (26,766 ) Total discounted future minimum lease payments $ 154,736 A schedule of the future minimum rental commitments under our non-cancelable operating lease agreements with an initial or remaining term in excess of one year as of August 3, 2019, were as follows: (in thousands) August 3, 2019 2020 $ 27,018 2021 27,680 2022 25,451 2023 23,258 2024 19,696 Thereafter 56,687 Total $ 179,790 The weighted average remaining term for our leases as of November 2, 2019 was 6.7 years . The weighted average discount rate for our leases as of November 2, 2019 was 4.4% . Supplemental cash flow information related to our leases is as follows: For the Three Months Ended (in thousands) November 2, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,960 Operating lease right-of-use assets obtained in exchange for operating lease liabilities 133,091 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Nov. 02, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) November 2, 2019 August 3, 2019 Compensation and related benefits $ 14,797 $ 9,494 Advertising 15,135 12,922 Sales taxes 8,904 6,956 Shipping and freight 8,408 7,045 Accrued accounts payable 8,930 7,550 Inventory purchases 18,235 15,703 Other 11,840 10,064 Total accrued liabilities $ 86,249 $ 69,734 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In November 2019, the Company executed an agreement for cloud computing services. The agreement was effective as of November 1, 2019, and continues through October 30, 2022. The Company has a total minimum commitment of $23.5 million with annual commitments ranging from $7.5 million to $8.0 million . Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although we cannot predict with assurance the outcome of any litigation or tax matters, we do not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on our operating results, financial position, and cash flows. On October 11, 2018, October 26, 2018, November 16, 2018, and December 10, 2018, four putative class action lawsuits alleging violations of the federal securities laws were filed in the U.S. District Court for the Northern District of California, naming as defendants us and certain of our officers. The four lawsuits each make the same allegations of violations of the Securities Exchange Act of 1934, as amended, by us and our officers for allegedly making materially false and misleading statements regarding our active client growth and strategy with respect to television advertising between June 2018 and October 2018. The plaintiffs seek unspecified monetary damages and other relief. The four lawsuits have been consolidated and a lead plaintiff has been appointed. On September 18, 2019, the lead plaintiff in the consolidated class action lawsuits filed a consolidated complaint for violation of the federal securities laws. On October 28, 2019, we and other defendants filed a motion to dismiss the consolidated complaint. The lead plaintiff’s opposition to the motion to dismiss is due on December 9, 2019, and defendants’ reply in support of our motion to dismiss is due on December 30, 2019. A hearing on the motion to dismiss is currently set for January 23, 2020. On December 12, 2018, a derivative action was filed against our directors in the same court, alleging the same violations of securities laws as alleged in the four putative class action cases described above and breach of fiduciary duties. The derivative action has been stayed pending the outcome of the motion to dismiss in the related class action lawsuits. There have been no other material changes to our commitments and contingencies as disclosed in our 2019 Annual Report. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to vendors, directors, officers and other parties with respect to certain matters. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in our condensed consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Nov. 02, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The table below presents the changes in AOCI by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at July 28, 2018 $ — $ — $ — Other comprehensive income (loss) before reclassifications (1) (82 ) 26 (56 ) Net change in AOCI (82 ) 26 (56 ) Balance at October 27, 2018 $ (82 ) $ 26 $ (56 ) Changes in Accumulated Other Comprehensive Income (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at August 3, 2019 $ 391 $ (578 ) $ (187 ) Other comprehensive income (loss) before reclassifications (1) (172 ) 1,755 1,583 Net change in AOCI (172 ) 1,755 1,583 Balance at November 2, 2019 $ 219 $ 1,177 $ 1,396 (1) The associated income tax effects for gains / losses on available-for-sale securities were $67 and $409 for the three months ended October 27, 2018 , and November 2, 2019 , respectively. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Nov. 02, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2011 Equity Incentive Plan In 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan provided for the grant of stock-based awards to employees, directors, and nonemployees under terms and provisions established by the board of directors. The 2011 Plan allowed for the grant of incentive stock options or nonqualified stock options as well as restricted stock units, restricted stock, and stock appreciation rights. Only incentive and nonqualified stock options were granted under the 2011 Plan. Employee stock option grants generally vest 25% on the first anniversary of the grant date with the remaining options vesting ratably over the next three years . Options generally expire after 10 years. Effective upon our IPO, the 2011 Plan was replaced by the 2017 Incentive Plan. 2017 Incentive Plan In November 2017, our board of directors and stockholders adopted our 2017 Incentive Plan (the “2017 Plan”). The remaining shares available for issuance under the 2011 Plan became reserved for issuance under the 2017 Plan. Our 2017 Plan provides for the grant of Class A incentive stock options to employees, including employees of any parent or subsidiary, and for the grant of nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our subsidiaries. The number of shares authorized for issuance under the 2017 Plan was 22,207,698 as of November 2, 2019 , of which 5,283,769 were available for grant. 2019 Inducement Plan In October 2019, our board of directors adopted our 2019 Inducement Plan (the “2019 Plan”). Our 2019 Plan provides for the grant of Class A nonqualified stock options and restricted stock unit awards to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. The number of shares authorized for issuance under the 2019 Plan was 1,750,000 as of November 2, 2019 , of which 1,496,972 were available for grant. Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan is as follows: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in thousands) Balance – August 3, 2019 7,070,125 $ 14.48 7.72 $ 73,861 Granted 269,346 $ 22.64 Exercised (122,668 ) $ 4.33 Cancelled (67,513 ) $ 20.33 Balance – November 2, 2019 7,149,290 $ 14.92 7.58 $ 62,803 The aggregate intrinsic value is the difference between the current fair value of the underlying common stock and the exercise price for in-the-money stock options. The following table summarizes the restricted stock unit (“RSU”) award activity under the 2017 Plan and 2019 Plan: Unvested RSUs Class A Common Stock Weighted- Unvested at August 3, 2019 4,428,845 $ 27.30 Granted 1,246,443 $ 20.09 Vested (188,498 ) $ 29.80 Forfeited (275,885 ) $ 27.21 Unvested at November 2, 2019 5,210,905 $ 25.49 Stock-Based Compensation Expense Stock-based compensation expense for employees was $12.1 million and $6.6 million for the three months ended November 2, 2019 , and October 27, 2018 , respectively. Stock-based compensation expense is included in selling, general, and administrative expenses in our condensed consolidated statements of operations and comprehensive income. The weighted-average grant date fair value of options granted during the three months ended November 2, 2019 , was $11.30 per share. The weighted-average grant date fair value of options granted during the three months ended October 27, 2018 , was $17.22 per share. As of November 2, 2019 , the total unrecognized compensation expense related to unvested options and RSUs, net of estimated forfeitures, was $158.5 million , which we expect to recognize over an estimated weighted average period of 2.9 years . We record stock-based compensation of stock options granted to employees by estimating the fair value of stock-based awards using the Black-Scholes option pricing model and amortizing the fair value of the stock-based awards granted over the applicable vesting period of the awards on a straight-line basis. The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: For the Three Months Ended November 2, 2019 October 27, 2018 Expected term (in years) 6.0 - 6.2 5.1 - 6.2 Volatility 51.2 % 41.7 - 42.0% Risk free interest rate 1.7 % 2.8 - 3.0% Dividend yield — % — % |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our effective tax rate from income for the periods presented: For the Three Months Ended (in thousands) November 2, 2019 October 27, 2018 Income before income taxes $ 979 $ 12,416 Provision for income taxes 1,157 1,738 Effective tax rate 118.2 % 14.0 % We are primarily subject to income taxes in the United States. Our effective tax rate for the three months ended November 2, 2019 , differs from the federal statutory income tax rate primarily due to impacts from tax reform, certain nondeductible expenses, tax expense related to employee share-based awards, and state taxes which are offset by the benefit of allowable credits. Our effective tax rate for the three months ended October 27, 2018 , differed from the federal statutory income tax rate primarily due to lower tax rates in foreign jurisdictions where international expansion expenses are incurred, and certain nondeductible expenses and state taxes, partially offset by the benefits on stock-based compensation deductions and allowable credits. |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Common Stockholders | 3 Months Ended |
Nov. 02, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share Attributable to Common Stockholders | Earnings (Loss) Per Share Attributable to Common Stockholders Basic and diluted earnings (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. We consider convertible preferred stock and early exercised share options to be participating securities. In connection with our IPO, we established two classes of authorized common stock: Class A common stock and Class B common stock. As a result, all then-outstanding shares of common stock were converted into shares of Class B common stock upon effectiveness of our IPO. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock. Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted-average common shares outstanding. For the calculation of diluted earnings (loss) per share (“EPS”), net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. The computation of the diluted net income (loss) per share of Class A common stock assumes the conversion of Class B common stock, while diluted net income (loss) per share of Class B common stock does not assume the conversion of Class A common stock as Class A common stock is not convertible into Class B common stock. A reconciliation of the numerator and denominator used in the calculation of basic and diluted EPS attributable to common stockholders is as follows: For the Three Months Ended November 2, 2019 October 27, 2018 (in thousands, except share and per share amounts) Class A Class B Class A Class B Numerator: Net income (loss) $ (96 ) $ (82 ) $ 4,084 $ 6,594 Less: undistributed earnings to participating securities — — (5 ) (9 ) Net income (loss) attributable to common stockholders - basic (96 ) (82 ) 4,079 6,585 Add: adjustments to undistributed earnings to participating securities — — 1 — Reallocation of undistributed earnings (loss) as a result of conversion of Class B to Class A shares — — 6,585 — Reallocation of undistributed earnings (loss) to Class B shares — — — 85 Net income (loss) attributable to common stockholders - diluted $ (96 ) $ (82 ) $ 10,665 $ 6,670 Denominator: Weighted-average shares of common stock - basic 54,867,211 46,690,335 37,850,643 61,114,631 Conversion of Class B to Class A common shares outstanding — — 61,114,631 — Effect of dilutive stock options and restricted stock units — — 5,574,178 4,260,911 Weighted-average shares of common stock - diluted 54,867,211 46,690,335 104,539,452 65,375,542 Earnings (loss) per share attributable to common stockholders: Basic $ (0.00 ) $ (0.00 ) $ 0.11 $ 0.11 Diluted $ (0.00 ) $ (0.00 ) $ 0.10 $ 0.10 The following common stock equivalents were excluded from the computation of diluted earnings per share for the periods presented because including them would have been antidilutive: For the Three Months Ended November 2, 2019 October 27, 2018 Restricted stock units 3,735,946 750,607 Stock options to purchase Class A common stock 2,186,564 351,184 Stock options to purchase Class B common stock 4,418,546 2,239 Total 10,341,056 1,104,030 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 02, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ending August 1, 2020 (“ 2020 ”), and August 3, 2019 (“ 2019 ”), consist of 52 weeks and 53 weeks, respectively. The unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending August 1, 2020 , or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended August 3, 2019 , included in the Company’s Annual Report on Form 10-K filed with the SEC on October 2, 2019 (“2019 Annual Report”). |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in our condensed consolidated financial statements and accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, leases, and revenue recognition. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. |
Restricted Cash | Restricted Cash Restricted cash represented cash balances held in segregated accounts collateralizing letters of credit for our leased properties at October 27, 2018 . |
Short-Term and Long-Term Investments | Short-Term and Long-Term Investments The Company’s short-term and long-term investments have been classified and accounted for as available-for-sale securities. We determine the appropriate classification of our investments at the time of purchase and reevaluate the classification at each balance sheet date. Available-for-sale securities with maturities of 12 months or less are classified as short-term and available-for-sale securities with maturities greater than 12 months are classified as long-term. The Company’s available-for-sale securities are carried at fair value, with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive income (“AOCI”) in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary, which are reported in earnings in the current period, if applicable. The cost of securities sold is based upon the specific identification method. |
Foreign Currency | Foreign Currency The functional currency of our international subsidiary is the local currency. For that subsidiary, we translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’ equity. Net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are recorded in other income, net in the condensed consolidated statements of operations and comprehensive income. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from the sale of merchandise in a Fix and, to a lesser extent, from direct purchases. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix to be delivered on a specified date. Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable upfront styling fee before the Fix is shipped. As an alternative to the styling fee, we offer select clients the option to purchase a Style Pass. Style Pass clients pay a nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a discount to clients who purchase all of the items in the Fix. We recognize revenue through the following steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Both our styling fee and Style Pass arrangements consist of one performance obligation, which is the option to purchase merchandise. The upfront styling fee is not a performance obligation as the styling activity is not distinct within the context of the contract. Similarly, the right to receive multiple options under Style Pass does not provide the customer with material stand-alone value and therefore does not give rise to a separate performance obligation. Both the upfront styling fee and Style Pass annual fee are included in deferred revenue until the performance obligation is satisfied when the client exercises his or her option to purchase merchandise (i.e., upon checkout of a Fix) or when the option(s) to purchase merchandise expire(s). Revenue is recognized when control of the promised goods is transferred to the client. For a Fix, control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. For a direct purchase, control is transferred when the item is shipped to the client. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. All shipping and handling costs are accounted for as fulfillment costs in cost of goods sold and as selling, general, and administrative expense (“SG&A”), respectively, and are therefore not evaluated as a separate performance obligation. Discounts are recorded as a reduction to revenue when the order is accepted. We record a refund reserve based on our historical refund patterns. Our refund reserve, which is included in accrued liabilities in the condensed consolidated balance sheets, was $2.5 million and $3.1 million as of November 2, 2019 , and August 3, 2019 , respectively. The Company has four types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, and (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used. We sell gift cards to clients and establish a liability based upon the face value of such gift cards. We reduce the liability and recognize revenue upon usage of the gift card. If a gift card is not used, we will recognize estimated gift card breakage revenue proportionately to customer usage of gift cards over the expected gift card usage period, subject to requirements to remit balances to governmental agencies. All commissions paid to third parties upon issuance of gift cards are recognized in SG&A as incurred, as on average, gift cards are used within a one-year period. Similarly, referral credits that are considered incremental costs of obtaining a contract with a customer are recognized in SG&A when issued, as on average, referral credits are used within a one-year period. Contractual liabilities included in deferred revenue, gift card liability, and other current liabilities were $12.0 million , $6.9 million , and $2.6 million , respectively, at November 2, 2019 , and $12.0 million , $7.2 million , and $1.6 million , respectively, at August 3, 2019 . During the three months ended November 2, 2019 , the Company recognized $10.9 million , $1.4 million , and $0.5 million of revenue included in deferred revenue, gift card liability, and other current liabilities at August 3, 2019 . Deferred revenue related to upfront styling fees totaled $9.6 million as of November 2, 2019 , and $9.6 million as of August 3, 2019 . Deferred revenue related to Style Pass annual fees totaled $2.3 million as of November 2, 2019 , and $2.3 million as of August 3, 2019 . The Company expects deferred revenue for upfront styling fees and Style Pass annual fees to be recognized within one year. On average, gift card liability and other current liabilities are also recognized within one year. |
Concentration of Credit Risks | Concentration of Credit Risks We are subject to concentrations of credit risk principally from cash and cash equivalents and investment securities. The majority of our cash is held by three financial institutions within the United States. Our cash balances held by these institutions may exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. |
Recently Issued/Adopted Accounting Pronouncements and Recently Issued SEC Rules | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard requires entities to use a financial instrument impairment model based on expected losses, known as the current expected credit loss model, rather than incurred losses. Under the new guidance, an entity recognizes an allowance for estimated credit losses upon recognition of the financial instrument. We expect to adopt this standard in our first fiscal quarter of 2021. We are currently evaluating the impact that this standard will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard is effective beginning in our first fiscal quarter of 2021 on a prospective or retrospective basis, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to Accounting Standards Codification (“ASC”) 840. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Presentation of leases within the consolidated statements of operations and comprehensive income and consolidated statements of cash flow is generally consistent with prior periods presented under ASC 840. However, this standard resulted in a substantial increase in our long-term assets and liabilities on our consolidated balance sheet. We adopted this standard on August 4, 2019, on a modified retrospective basis through a cumulative-effect adjustment of zero to opening retained earnings. We also elected the package of practical expedients to leases that commenced before the effective date whereby we elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. Upon adoption of ASU 2016-02, we did not record right-of-use assets or lease liabilities for leases with an initial term of 12 months or less. Payments on those leases will be recognized on a straight-line basis through the consolidated statements of operations and comprehensive income over the lease term. We also elected to combine lease and non-lease components on new or modified leases after adoption. Upon adoption on August 4, 2019, we recorded $133.0 million in right-of-use assets, net of $25.7 million previously recorded as deferred rent on our consolidated balance sheets. We also recorded $22.0 million in current operating lease liabilities and $136.7 million in operating lease liabilities, net of current portion. In June 2018, the FASB issued ASU No. 2018-07 , Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). Under ASU 2018-07, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. We adopted this standard in the first quarter of fiscal year 2020. The standard did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amended the existing FASB Accounting Standards Codification. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services and also provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (“modified retrospective method”). We adopted the standard in the first quarter of 2019 under the modified retrospective approach. Under the new standard, we recognize estimated gift card breakage revenue proportionately to customer gift card usage over the expected gift card usage period rather than waiting until the likelihood of redemption becomes remote. Further, we recognize revenue related to exchanges upon shipment by us, rather than upon receipt by the customer. In the first quarter of 2019, the Company recorded a cumulative catch-up adjustment resulting in an increase to opening retained earnings, net of tax, of $0.4 million , comprised of the impact of $0.3 million from the change in revenue recognition related to gift cards and $0.1 million from the recognition of exchanges upon shipment. The impact to net revenue for the three months ended October 27, 2018, was an increase of $0.5 million as a result of adopting the standard. In October 2016, the FASB issued ASU No. 2016-16 , Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which amends existing guidance on the recognition of current and deferred income tax impacts for intra-entity asset transfers other than inventory. We adopted the standard in the first quarter of 2019 under the modified retrospective approach. As a result, a cumulative adjustment of $0.4 million , net of tax, was recorded to reduce opening retained earnings in connection with adoption of this standard. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value of Available-for-sale Investments | The following table sets forth the amortized cost, gross unrealized gains, gross unrealized losses and fair values of our short-term and long-term investments accounted for as available-for-sale securities as of November 2, 2019 : November 2, 2019 August 3, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial Assets: Investments: U.S. Treasury securities $ 70,429 $ 155 $ (6 ) $ 70,578 $ 49,807 $ 100 $ — $ 49,907 Commercial paper 35,851 — — 35,851 29,761 — — 29,761 Asset-backed securities 47,103 181 — 47,284 42,587 145 — 42,732 Corporate bonds 82,025 298 — 82,323 73,969 279 — 74,248 Total $ 235,408 $ 634 $ (6 ) $ 236,036 $ 196,124 $ 524 $ — $ 196,648 |
Schedule of Fair Value of Available-for-sale Securities By Contractual Maturity | The following table sets forth the fair value of available-for-sale securities by contractual maturity as of November 2, 2019 : November 2, 2019 August 3, 2019 (in thousands) One Year or Less Over One Year Through Five Years Over Five Years Total One Year or Less Over One Year Through Five Years Over Five Years Total Financial Assets: Investments: U.S. Treasury securities $ 38,979 $ 31,599 $ — $ 70,578 $ 44,772 $ 5,135 $ — $ 49,907 Commercial paper 35,851 — — 35,851 29,761 — — 29,761 Asset-backed securities 5,422 41,862 — 47,284 5,412 37,320 — 42,732 Corporate bonds 65,252 17,071 — 82,323 63,331 10,917 — 74,248 Total $ 145,504 $ 90,532 $ — $ 236,036 $ 143,276 $ 53,372 $ — $ 196,648 |
Schedule of Short-term and Long-term Investments Accounted for as Available-for-sale Measured at Fair Value on Recurring Basis | The following table sets forth our cash equivalents, and short-term and long-term investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis based on the fair value hierarchy as of November 2, 2019 : November 2, 2019 August 3, 2019 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 204 $ — $ — $ 204 $ 6,427 $ — $ — $ 6,427 Commercial paper — — — — — 11,970 — 11,970 Investments: U.S. Treasury securities 70,578 — — 70,578 49,907 — — 49,907 Commercial paper — 35,851 — 35,851 — 29,761 — 29,761 Asset-backed securities — 47,284 — 47,284 — 42,732 — 42,732 Corporate bonds — 82,323 — 82,323 — 74,248 — 74,248 Total $ 70,782 $ 165,458 $ — $ 236,240 $ 56,334 $ 158,711 $ — $ 215,045 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Leases [Abstract] | |
Summary of Lease Components and Supplemental Cash Flows | Supplemental cash flow information related to our leases is as follows: For the Three Months Ended (in thousands) November 2, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,960 Operating lease right-of-use assets obtained in exchange for operating lease liabilities 133,091 The following table includes the components of our rent expense recorded in selling, general, and administrative expense: For the Three Months Ended (in thousands) November 2, 2019 Operating lease cost $ 7,213 Variable lease costs 1,509 Sublease income (374 ) Total $ 8,348 |
Schedule of Maturities of Operating Lease Liabilities and Future Minimum Rental Commitments | The following is a schedule by year of the maturities of operating lease liabilities with original terms in excess of one year, as of November 2, 2019 : (in thousands) November 2, 2019 Remainder of 2020 $ 21,965 2021 29,573 2022 27,315 2023 25,062 2024 20,899 2025 16,362 Thereafter 40,326 Total undiscounted future minimum lease payments 181,502 Less imputed interest (26,766 ) Total discounted future minimum lease payments $ 154,736 A schedule of the future minimum rental commitments under our non-cancelable operating lease agreements with an initial or remaining term in excess of one year as of August 3, 2019, were as follows: (in thousands) August 3, 2019 2020 $ 27,018 2021 27,680 2022 25,451 2023 23,258 2024 19,696 Thereafter 56,687 Total $ 179,790 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) November 2, 2019 August 3, 2019 Compensation and related benefits $ 14,797 $ 9,494 Advertising 15,135 12,922 Sales taxes 8,904 6,956 Shipping and freight 8,408 7,045 Accrued accounts payable 8,930 7,550 Inventory purchases 18,235 15,703 Other 11,840 10,064 Total accrued liabilities $ 86,249 $ 69,734 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss By Component | The table below presents the changes in AOCI by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at July 28, 2018 $ — $ — $ — Other comprehensive income (loss) before reclassifications (1) (82 ) 26 (56 ) Net change in AOCI (82 ) 26 (56 ) Balance at October 27, 2018 $ (82 ) $ 26 $ (56 ) Changes in Accumulated Other Comprehensive Income (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at August 3, 2019 $ 391 $ (578 ) $ (187 ) Other comprehensive income (loss) before reclassifications (1) (172 ) 1,755 1,583 Net change in AOCI (172 ) 1,755 1,583 Balance at November 2, 2019 $ 219 $ 1,177 $ 1,396 (1) The associated income tax effects for gains / losses on available-for-sale securities were $67 and $409 for the three months ended October 27, 2018 , and November 2, 2019 , respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity Under 2011 and 2017 Stock Plan | Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan is as follows: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in thousands) Balance – August 3, 2019 7,070,125 $ 14.48 7.72 $ 73,861 Granted 269,346 $ 22.64 Exercised (122,668 ) $ 4.33 Cancelled (67,513 ) $ 20.33 Balance – November 2, 2019 7,149,290 $ 14.92 7.58 $ 62,803 |
Summary of Restricted Stock Units Award Activity | The following table summarizes the restricted stock unit (“RSU”) award activity under the 2017 Plan and 2019 Plan: Unvested RSUs Class A Common Stock Weighted- Unvested at August 3, 2019 4,428,845 $ 27.30 Granted 1,246,443 $ 20.09 Vested (188,498 ) $ 29.80 Forfeited (275,885 ) $ 27.21 Unvested at November 2, 2019 5,210,905 $ 25.49 |
Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options | The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: For the Three Months Ended November 2, 2019 October 27, 2018 Expected term (in years) 6.0 - 6.2 5.1 - 6.2 Volatility 51.2 % 41.7 - 42.0% Risk free interest rate 1.7 % 2.8 - 3.0% Dividend yield — % — % |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate from Income | The following table summarizes our effective tax rate from income for the periods presented: For the Three Months Ended (in thousands) November 2, 2019 October 27, 2018 Income before income taxes $ 979 $ 12,416 Provision for income taxes 1,157 1,738 Effective tax rate 118.2 % 14.0 % |
Earnings (Loss) Per Share Att_2
Earnings (Loss) Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Nov. 02, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted EPS | A reconciliation of the numerator and denominator used in the calculation of basic and diluted EPS attributable to common stockholders is as follows: For the Three Months Ended November 2, 2019 October 27, 2018 (in thousands, except share and per share amounts) Class A Class B Class A Class B Numerator: Net income (loss) $ (96 ) $ (82 ) $ 4,084 $ 6,594 Less: undistributed earnings to participating securities — — (5 ) (9 ) Net income (loss) attributable to common stockholders - basic (96 ) (82 ) 4,079 6,585 Add: adjustments to undistributed earnings to participating securities — — 1 — Reallocation of undistributed earnings (loss) as a result of conversion of Class B to Class A shares — — 6,585 — Reallocation of undistributed earnings (loss) to Class B shares — — — 85 Net income (loss) attributable to common stockholders - diluted $ (96 ) $ (82 ) $ 10,665 $ 6,670 Denominator: Weighted-average shares of common stock - basic 54,867,211 46,690,335 37,850,643 61,114,631 Conversion of Class B to Class A common shares outstanding — — 61,114,631 — Effect of dilutive stock options and restricted stock units — — 5,574,178 4,260,911 Weighted-average shares of common stock - diluted 54,867,211 46,690,335 104,539,452 65,375,542 Earnings (loss) per share attributable to common stockholders: Basic $ (0.00 ) $ (0.00 ) $ 0.11 $ 0.11 Diluted $ (0.00 ) $ (0.00 ) $ 0.10 $ 0.10 |
Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share | The following common stock equivalents were excluded from the computation of diluted earnings per share for the periods presented because including them would have been antidilutive: For the Three Months Ended November 2, 2019 October 27, 2018 Restricted stock units 3,735,946 750,607 Stock options to purchase Class A common stock 2,186,564 351,184 Stock options to purchase Class B common stock 4,418,546 2,239 Total 10,341,056 1,104,030 |
Description of Business - Addit
Description of Business - Additional Information (Details) $ / shares in Units, $ in Millions | Nov. 16, 2017USD ($)classvote$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Nov. 17, 2017shares |
Class of Stock [Line Items] | |||
Number of new classes of common stock authorized | class | 2 | ||
Common stock, conversion ratio | 1 | ||
Preferred stock, shares outstanding (in shares) | 0 | ||
Preferred stock warrants outstanding (in shares) | 0 | ||
IPO | |||
Class of Stock [Line Items] | |||
Proceeds from initial public offering, net of underwriting discounts paid | $ | $ 110.4 | ||
Underwriting discounts | $ | 6.2 | ||
Offering costs | $ | $ 3.4 | ||
IPO | Class A Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes per share | vote | 1 | ||
Number of shares issued (in shares) | 8,000,000 | ||
Price per share (in dollars per share) | $ / shares | $ 15 | ||
IPO | Class B Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes per share | vote | 10 | ||
Number of shares converted as a result of the IPO (in shares) | 59,511,055 | ||
Outstanding preferred stock warrants exercised (in shares) | 1,066,225 | ||
Underwriters' Over-Allotment Option | Class A Common Stock | |||
Class of Stock [Line Items] | |||
Number of shares issued (in shares) | 1,175,557 | ||
Price per share (in dollars per share) | $ / shares | $ 15 | ||
Net proceeds after deducting underwriting discounts and expenses | $ | $ 16.7 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | |||||
Nov. 02, 2019USD ($)performance_obligation | Oct. 27, 2018USD ($) | Aug. 04, 2019USD ($) | Aug. 03, 2019USD ($) | Jul. 29, 2018USD ($) | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Number of performance obligations | performance_obligation | 1 | |||||
Refund reserve | $ 2,500 | $ 3,100 | ||||
Contractual liabilities | 11,976 | 11,997 | ||||
Operating lease, right-of-use assets | 128,717 | 0 | ||||
Current operating lease liabilities | 23,042 | 0 | ||||
Noncurrent operating lease liabilities | 131,694 | 0 | ||||
Cumulative effect of adopting accounting standards | [1] | $ 35 | ||||
Upfront Styling Fees | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contractual liabilities | 9,600 | 9,600 | ||||
Style Pass annual fees | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contractual liabilities | 2,300 | 2,300 | ||||
Accounting Standards Update 2016-02 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Operating lease, right-of-use assets | $ 133,000 | |||||
Deferred rent previously recorded | 25,700 | |||||
Current operating lease liabilities | 22,000 | |||||
Noncurrent operating lease liabilities | $ 136,700 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Impact to net revenue as a result of adopting standard | $ 500 | |||||
Deferred revenue | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contractual liabilities | 12,000 | 12,000 | ||||
Revenue recognized | 10,900 | |||||
Gift card liability | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contractual liabilities | 6,900 | 7,200 | ||||
Revenue recognized | 1,400 | |||||
Other current liabilities | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contractual liabilities | 2,600 | $ 1,600 | ||||
Revenue recognized | $ 500 | |||||
Retained Earnings | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cumulative effect of adopting accounting standards | [1] | 35 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cumulative effect of adopting accounting standards | 400 | |||||
Retained Earnings | Accounting Standards Update 2014-09 | Gift Cards | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cumulative effect of adopting accounting standards | 300 | |||||
Retained Earnings | Accounting Standards Update 2014-09 | Product Exchanges | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cumulative effect of adopting accounting standards | 100 | |||||
Retained Earnings | Accounting Standards Update 2016-16 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cumulative effect of adopting accounting standards | $ 400 | |||||
[1] | See Note 2, Summary of Significant Accounting Policies, of the Notes to the Condensed Consolidated Financial Statements for more details on the cumulative effect of adopting accounting standards. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 235,408 | $ 196,124 |
Gross Unrealized Gains | 634 | 524 |
Gross Unrealized Losses | (6) | 0 |
Fair Value | 236,036 | 196,648 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 70,429 | 49,807 |
Gross Unrealized Gains | 155 | 100 |
Gross Unrealized Losses | (6) | 0 |
Fair Value | 70,578 | 49,907 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35,851 | 29,761 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 35,851 | 29,761 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 47,103 | 42,587 |
Gross Unrealized Gains | 181 | 145 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 47,284 | 42,732 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 82,025 | 73,969 |
Gross Unrealized Gains | 298 | 279 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 82,323 | $ 74,248 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | $ 145,504 | $ 143,276 |
Over One Year Through Five Years | 90,532 | 53,372 |
Over Five Years | 0 | 0 |
Total | 236,036 | 196,648 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 38,979 | 44,772 |
Over One Year Through Five Years | 31,599 | 5,135 |
Over Five Years | 0 | 0 |
Total | 70,578 | 49,907 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 35,851 | 29,761 |
Over One Year Through Five Years | 0 | 0 |
Over Five Years | 0 | 0 |
Total | 35,851 | 29,761 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 5,422 | 5,412 |
Over One Year Through Five Years | 41,862 | 37,320 |
Over Five Years | 0 | 0 |
Total | 47,284 | 42,732 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 65,252 | 63,331 |
Over One Year Through Five Years | 17,071 | 10,917 |
Over Five Years | 0 | 0 |
Total | $ 82,323 | $ 74,248 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis Based on Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | $ 236,036 | $ 196,648 |
Assets at fair value | 236,240 | 215,045 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | 70,782 | 56,334 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | 165,458 | 158,711 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 70,578 | 49,907 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 35,851 | 29,761 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 47,284 | 42,732 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 82,323 | 74,248 |
Commercial paper | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 0 | 11,970 |
Money market funds | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 204 | 6,427 |
Fair Value, Recurring | Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 0 | 0 |
Fair Value, Recurring | Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 0 | 11,970 |
Fair Value, Recurring | Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 0 | 0 |
Fair Value, Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 204 | 6,427 |
Fair Value, Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 0 | 0 |
Fair Value, Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 35,851 | 29,761 |
Commercial paper | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Commercial paper | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 35,851 | 29,761 |
Commercial paper | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 70,578 | 49,907 |
U.S. Treasury securities | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 70,578 | 49,907 |
U.S. Treasury securities | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
U.S. Treasury securities | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 47,284 | 42,732 |
Asset-backed securities | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Asset-backed securities | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 47,284 | 42,732 |
Asset-backed securities | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 82,323 | 74,248 |
Corporate bonds | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Corporate bonds | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 82,323 | 74,248 |
Corporate bonds | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Nov. 02, 2019USD ($)renewal_option | Aug. 04, 2019USD ($) | Aug. 03, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use assets | $ 128,717 | $ 0 | |
Operating lease liabilities | $ 154,736 | $ 179,790 | |
Number of renewal options | renewal_option | 1 | ||
Weighted average remaining lease term | 6 years 8 months 12 days | ||
Weighted average discount rate, percent | 4.40% | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use assets | $ 133,000 | ||
Operating lease liabilities | $ 158,700 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Term of operating lease | 5 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Term of operating lease | 8 years |
Leases - Summary of Lease Compo
Leases - Summary of Lease Components (Details) $ in Thousands | 3 Months Ended |
Nov. 02, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 7,213 |
Variable lease costs | 1,509 |
Sublease income | (374) |
Total | $ 8,348 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 21,965 | $ 27,018 |
2021 | 29,573 | 27,680 |
2022 | 27,315 | 25,451 |
2023 | 25,062 | 23,258 |
2024 | 20,899 | 19,696 |
2025 | 16,362 | |
Thereafter | 40,326 | |
Total undiscounted future minimum lease payments | 181,502 | |
Less imputed interest | (26,766) | |
Total discounted future minimum lease payments | $ 154,736 | $ 179,790 |
Leases Leases - Schedule of Fut
Leases Leases - Schedule of Future Minimum Rental Commitments (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Leases [Abstract] | ||
2020 | $ 21,965 | $ 27,018 |
2021 | 29,573 | 27,680 |
2022 | 27,315 | 25,451 |
2023 | 25,062 | 23,258 |
2024 | 20,899 | 19,696 |
Thereafter | 56,687 | |
Total discounted future minimum lease payments | $ 154,736 | $ 179,790 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows Information (Details) $ in Thousands | 3 Months Ended |
Nov. 02, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6,960 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 133,091 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 03, 2019 |
Payables and Accruals [Abstract] | ||
Compensation and related benefits | $ 14,797 | $ 9,494 |
Advertising | 15,135 | 12,922 |
Sales taxes | 8,904 | 6,956 |
Shipping and freight | 8,408 | 7,045 |
Accrued accounts payable | 8,930 | 7,550 |
Inventory purchases | 18,235 | 15,703 |
Other | 11,840 | 10,064 |
Total accrued liabilities | $ 86,249 | $ 69,734 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 2 Months Ended | 3 Months Ended |
Dec. 10, 2018lawsuit | Nov. 02, 2019USD ($) | |
Loss Contingencies [Line Items] | ||
Total minimum commitment amount | $ 23.5 | |
Number of lawsuits | lawsuit | 4 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Annual commitment amounts | 7.5 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Annual commitment amounts | $ 8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | $ 396,000 | $ 315,072 |
Other comprehensive income (loss) before reclassifications | 1,583 | (56) |
Total other comprehensive income (loss), net of tax | 1,583 | (56) |
Stockholders' equity, ending balance | 408,614 | 333,503 |
Tax (benefit) expense for gains and losses on available-for-sale securities | 409 | 67 |
Available-for-sale Securities | ||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | 391 | 0 |
Other comprehensive income (loss) before reclassifications | (172) | (82) |
Total other comprehensive income (loss), net of tax | (172) | (82) |
Stockholders' equity, ending balance | 219 | (82) |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | (578) | 0 |
Other comprehensive income (loss) before reclassifications | 1,755 | 26 |
Total other comprehensive income (loss), net of tax | 1,755 | 26 |
Stockholders' equity, ending balance | 1,177 | 26 |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | ||
Stockholders' equity, beginning balance | (187) | 0 |
Total other comprehensive income (loss), net of tax | 1,583 | (56) |
Stockholders' equity, ending balance | $ 1,396 | $ (56) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value of options (in dollars per share) | $ 11.30 | $ 17.22 |
Unrecognized compensation expense related to unvested options and RSU’s, net of estimated forfeitures | $ 158.5 | |
Unrecognized compensation expense related to unvested options weighted average recognition period | 2 years 10 months 24 days | |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 12.1 | $ 6.6 |
2011 Equity Incentive Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining vesting after first anniversary of grant date | 3 years | |
Options exercisable period | 10 years | |
2011 Equity Incentive Plan | Stock Options | First Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options vesting percentage | 25.00% | |
2011 Equity Incentive Plan | Stock Options | Second Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options vesting percentage | 25.00% | |
2011 Equity Incentive Plan | Stock Options | Third Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options vesting percentage | 25.00% | |
2011 Equity Incentive Plan | Stock Options | Fourth Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options vesting percentage | 25.00% | |
2017 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance (in shares) | 22,207,698 | |
Number of shares available for grant (in shares) | 5,283,769 | |
2019 Inducement Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance (in shares) | 1,750,000 | |
Number of shares available for grant (in shares) | 1,496,972 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under 2011 and 2017 Stock Plan (Details) - 2011, 2017, and 2019 Plans - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 02, 2019 | Aug. 03, 2019 | |
Number of Options | ||
Outstanding, beginning balance (in shares) | 7,070,125 | |
Granted (in shares) | 269,346 | |
Exercised (in shares) | (122,668) | |
Cancelled (in shares) | (67,513) | |
Outstanding, ending balance (in shares) | 7,149,290 | 7,070,125 |
Weighted- Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 14.48 | |
Granted (in dollars per share) | 22.64 | |
Exercised (in dollars per share) | 4.33 | |
Cancelled (in dollars per share) | 20.33 | |
Outstanding, ending balance (in dollars per share) | $ 14.92 | $ 14.48 |
Weighted- Average Remaining Contractual Life (in Years) | ||
Outstanding, weighted-average remaining contractual life | 7 years 6 months 29 days | 7 years 8 months 19 days |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding, aggregate intrinsic value | $ 62,803 | $ 73,861 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units Award Activity (Details) - Class A Common Stock - Restricted stock units | 3 Months Ended |
Nov. 02, 2019$ / sharesshares | |
Class A Common Stock | |
Unvested, beginning balance (in shares) | shares | 4,428,845 |
Granted (in shares) | shares | 1,246,443 |
Vested (in shares) | shares | (188,498) |
Forfeited (in shares) | shares | (275,885) |
Unvested, ending balance (in shares) | shares | 5,210,905 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 27.30 |
Granted (in dollars per share) | $ / shares | 20.09 |
Vested (in dollars per share) | $ / shares | 29.80 |
Forfeited (in dollars per share) | $ / shares | 27.21 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 25.49 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options (Details) | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility, minimum | 41.70% | |
Volatility | 51.20% | |
Volatility, maximum | 42.00% | |
Risk free interest rate, minimum | 2.80% | |
Risk free interest rate | 1.70% | |
Risk free interest rate, maximum | 3.00% | |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | 5 years 1 month 6 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 2 months 23 days | 6 years 2 months 12 days |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate from Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 979 | $ 12,416 |
Provision for income taxes | $ 1,157 | $ 1,738 |
Effective tax rate | 118.20% | 14.00% |
Earnings (Loss) Per Share Att_3
Earnings (Loss) Per Share Attributable to Common Stockholders - Additional Information (Details) | Nov. 16, 2017classvote |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Number of new classes of common stock authorized | class | 2 |
Common stock, conversion ratio | 1 |
IPO | Class A Common Stock | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Number of votes per share | 1 |
IPO | Class B Common Stock | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Number of votes per share | 10 |
Earnings (Loss) Per Share Att_4
Earnings (Loss) Per Share Attributable to Common Stockholders - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Numerator: | ||
Net income (loss) | $ (178) | $ 10,678 |
Net income (loss) attributable to common stockholders - basic | (178) | 10,664 |
Net income (loss) attributable to common stockholders - diluted | $ (178) | $ 10,665 |
Denominator: | ||
Weighted-average shares of common stock - basic (in shares) | 101,557,546 | 98,965,274 |
Weighted-average shares of common stock - diluted (in shares) | 101,557,546 | 104,539,452 |
Earnings (loss) per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0 | $ 0.11 |
Diluted (in dollars per share) | $ 0 | $ 0.10 |
Class A Common Stock | ||
Numerator: | ||
Net income (loss) | $ (96) | $ 4,084 |
Less: undistributed earnings to participating securities | 0 | (5) |
Net income (loss) attributable to common stockholders - basic | (96) | 4,079 |
Add: adjustments to undistributed earnings to participating securities | 0 | 1 |
Reallocation of undistributed earnings (loss) as a result of conversion of Class B to Class A shares | 0 | 6,585 |
Reallocation of undistributed earnings (loss) to Class B shares | 0 | 0 |
Net income (loss) attributable to common stockholders - diluted | $ (96) | $ 10,665 |
Denominator: | ||
Weighted-average shares of common stock - basic (in shares) | 54,867,211 | 37,850,643 |
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 61,114,631 |
Effect of dilutive stock options and restricted stock units (in shares) | 0 | 5,574,178 |
Weighted-average shares of common stock - diluted (in shares) | 54,867,211 | 104,539,452 |
Earnings (loss) per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0 | $ 0.11 |
Diluted (in dollars per share) | $ 0 | $ 0.10 |
Class B Common Stock | ||
Numerator: | ||
Net income (loss) | $ (82) | $ 6,594 |
Less: undistributed earnings to participating securities | 0 | (9) |
Net income (loss) attributable to common stockholders - basic | (82) | 6,585 |
Add: adjustments to undistributed earnings to participating securities | 0 | 0 |
Reallocation of undistributed earnings (loss) as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings (loss) to Class B shares | 0 | 85 |
Net income (loss) attributable to common stockholders - diluted | $ (82) | $ 6,670 |
Denominator: | ||
Weighted-average shares of common stock - basic (in shares) | 46,690,335 | 61,114,631 |
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 |
Effect of dilutive stock options and restricted stock units (in shares) | 0 | 4,260,911 |
Weighted-average shares of common stock - diluted (in shares) | 46,690,335 | 65,375,542 |
Earnings (loss) per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0 | $ 0.11 |
Diluted (in dollars per share) | $ 0 | $ 0.10 |
Earnings (Loss) Per Share Att_5
Earnings (Loss) Per Share Attributable to Common Stockholders - Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | |
Nov. 02, 2019 | Oct. 27, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 10,341,056 | 1,104,030 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 3,735,946 | 750,607 |
Stock Options | Class A Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 2,186,564 | 351,184 |
Stock Options | Class B Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 4,418,546 | 2,239 |
Uncategorized Items - stitchfix
Label | Element | Value |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 250,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 0 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 0 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 12,600,000 |