Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 23, 2021 | Aug. 02, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-37641 | ||
Entity Registrant Name | DULUTH HOLDINGS INC. | ||
Entity Tax Identification Number | 39-1564801 | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Address, Address Line One | 201 East Front Street | ||
Entity Address, City or Town | Mount Horeb | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53572 | ||
City Area Code | 608 | ||
Local Phone Number | 424-1544 | ||
Title of 12(b) Security | Class B Common Stock, No Par Value | ||
Trading Symbol | DLTH | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 84.3 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Central Index Key | 0001649744 | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed within 120 days of January 31 , 2021 are incorporated by reference in this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14. | ||
Class A common stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,364,200 | ||
Class B common stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,548,011 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 47,221 | $ 2,189 |
Receivables | 2,820 | 1,470 |
Inventory, net | 149,052 | 147,849 |
Prepaid expenses & other current assets | 10,203 | 9,503 |
Prepaid catalog costs | 1,014 | 1,181 |
Total current assets | 210,310 | 162,192 |
Property and equipment, net | 124,237 | 137,071 |
Operating lease right-of-use assets | 117,490 | 120,431 |
Finance lease right-of-use assets, net | 53,468 | 46,677 |
Restricted cash | 51 | |
Available-for-sale security | 6,111 | 6,432 |
Other assets, net | 3,961 | 1,196 |
Total assets | 515,577 | 474,050 |
Current liabilities: | ||
Trade accounts payable | 33,647 | 33,053 |
Accrued expenses and other current liabilities | 37,686 | 29,464 |
Income taxes payable | 7,579 | 3,427 |
Current portion of operating lease liabilities | 11,050 | 10,674 |
Current portion of finance lease liabilities | 2,629 | 1,600 |
Current portion of Duluth long-term debt | 2,500 | 1,000 |
Current maturities of TRI long-term debt | 623 | 557 |
Total current liabilities | 95,714 | 79,775 |
Operating lease liabilities, less current maturities | 104,287 | 106,120 |
Finance lease liabilities, less current portion | 43,299 | 37,434 |
Duluth long-term debt, less current portion | 45,750 | 38,332 |
TRI long-term debt, less current maturities | 27,229 | 27,778 |
Deferred tax liabilities | 8,200 | 8,505 |
Total liabilities | 324,479 | 297,944 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, no par value; 10,000 shares authorized; no shares issued or outstanding as of January 31, 2021 and February 2, 2020 | ||
Treasury stock, at cost; 53 and 19 shares as of January 31, 2021 and February 2, 2020, respectively | (628) | (407) |
Capital stock | 92,875 | 90,902 |
Retained earnings | 101,166 | 87,589 |
Accumulated other comprehensive income | 48 | 188 |
Total shareholders' equity of Duluth Holdings Inc. | 193,461 | 178,272 |
Noncontrolling interest | (2,363) | (2,166) |
Total shareholders' equity | 191,098 | 176,106 |
Total liabilities and shareholders' equity | 515,577 | 474,050 |
Class A common stock [Member] | ||
Shareholders’ equity: | ||
Common stock | ||
Class B common stock [Member] | ||
Shareholders’ equity: | ||
Common stock |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2021 | Feb. 02, 2020 |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 53,000 | 19,000 |
Class A common stock [Member] | ||
Common stock, no par value | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,364,000 | 3,364,000 |
Common stock, shares outstanding | 3,364,000 | 3,364,000 |
Class B common stock [Member] | ||
Common stock, no par value | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 29,530,000 | 29,191,000 |
Common stock, shares outstanding | 29,477,000 | 29,172,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Consolidated Statements of Operations [Abstract] | ||
Net sales | $ 638,783 | $ 615,624 |
Cost of goods sold (excluding depreciation and amortization) | 307,257 | 287,475 |
Gross profit | 331,526 | 328,149 |
Selling, general and administrative expenses | 307,311 | 300,041 |
Operating income | 24,215 | 28,108 |
Interest expense | 6,263 | 4,471 |
Other income, net | 65 | 291 |
Income before income taxes | 18,017 | 23,928 |
Income tax expense | 4,637 | 5,429 |
Net income | 13,380 | 18,499 |
Less: Net loss attributable to noncontrolling interest | (197) | (422) |
Net income attributable to controlling interest | $ 13,577 | $ 18,921 |
Basic earnings per share (Class A and Class B): | ||
Weighted average shares of common stock outstanding | 32,447 | 32,309 |
Net income per share attributable to controlling interest | $ 0.42 | $ 0.59 |
Diluted earnings per share (Class A and Class B): | ||
Weighted average shares and equivalents outstanding | 32,580 | 32,371 |
Net income per share attributable to controlling interest | $ 0.42 | $ 0.58 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 13,380 | $ 18,499 |
Other comprehensive income | ||
Securities available-for-sale: Unrealized security (loss) income | (190) | 254 |
Securities available-for-sale: Income tax (benefit) expense | (50) | 66 |
Other comprehensive (loss) income | (140) | 188 |
Comprehensive income | 13,240 | 18,687 |
Comprehensive loss attributable to noncontrolling interest | (197) | (422) |
Comprehensive income attributable to controlling interest | $ 13,437 | $ 19,109 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Capital Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member]Cumulative Effect from Adoption of ASC 842 [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest in Variable Interest Entities [Member] | Cumulative Effect from Adoption of ASC 842 [Member] | Total |
Beginning balance at Feb. 03, 2019 | $ 89,849 | $ (92) | $ (1,924) | $ 70,592 | $ (239) | $ (1,924) | $ 160,110 | |
Beginning balance (in shares) at Feb. 03, 2019 | 32,574 | |||||||
Issuance of common stock | $ 554 | 554 | ||||||
Issuance of common stock, shares | 211 | |||||||
Consolidation of TRI Holdings, LLC | (1,505) | (1,505) | ||||||
Restricted stock forfeitures, shares | (234) | |||||||
Stock-based compensation | $ 499 | 499 | ||||||
Restricted stock surrendered for taxes | (315) | (315) | ||||||
Restricted stock surrendered for taxes, shares | (15) | |||||||
Other comprehensive income (loss) | $ 188 | 188 | ||||||
Net income | 18,921 | (422) | 18,499 | |||||
Ending balance at Feb. 02, 2020 | $ 90,902 | (407) | 87,589 | 188 | (2,166) | 176,106 | ||
Ending balance (in shares) at Feb. 02, 2020 | 32,536 | |||||||
Issuance of common stock | $ 515 | 515 | ||||||
Issuance of common stock, shares | 355 | |||||||
Restricted stock forfeitures, shares | (16) | |||||||
Stock-based compensation | $ 1,458 | 1,458 | ||||||
Restricted stock surrendered for taxes | (221) | (221) | ||||||
Restricted stock surrendered for taxes, shares | (34) | |||||||
Other comprehensive income (loss) | (140) | (140) | ||||||
Net income | 13,577 | (197) | 13,380 | |||||
Ending balance at Jan. 31, 2021 | $ 92,875 | $ (628) | $ 101,166 | $ 48 | $ (2,363) | $ 191,098 | ||
Ending balance (in shares) at Jan. 31, 2021 | 32,841 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 13,380 | $ 18,499 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,520 | 22,083 |
Stock-based compensation | 1,629 | 647 |
Deferred income taxes | (255) | (1,151) |
Loss on disposal of property and equipment | 324 | |
Changes in operating assets and liabilities: | ||
Receivables | (1,350) | 877 |
Income taxes receivable | 2,292 | |
Inventory | (1,203) | (50,164) |
Prepaid expense & other assets | 2,615 | 5,429 |
Software hosting implementation costs, net | (4,089) | |
Deferred catalog costs | 167 | 1,322 |
Trade accounts payable | (1,464) | 7,564 |
Income taxes payable | 4,152 | 3,209 |
Accrued expenses and deferred rent obligations | 7,719 | (2,260) |
Noncash lease impacts | 606 | |
Net cash provided by operating activities | 50,751 | 8,347 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (11,743) | (24,435) |
Capital contributions towards build-to-suit stores | (520) | (6,354) |
Principal receipts from available-for-sale security | 131 | 117 |
Change in other assets | (15) | |
Net cash used in investing activities | (12,132) | (30,687) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 95,388 | 271,754 |
Payments on line of credit | (114,720) | (268,965) |
Proceeds from delayed draw term loan | 30,000 | 20,000 |
Payments on delayed draw term loan | (1,750) | |
Payments on TRI long term debt | (483) | (495) |
Payments on finance lease obligations | (1,958) | (891) |
Shares withheld for tax payments on vested restricted shares | (221) | (315) |
Other | 106 | 407 |
Net cash provided by financing activities | 6,362 | 21,495 |
Increase (decrease) in cash, cash equivalents and restricted cash | 44,981 | (845) |
Cash, cash equivalents and restricted cash at beginning of period | 2,240 | 3,085 |
Cash, cash equivalents and restricted cash at end of period | 47,221 | 2,240 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 6,435 | 4,565 |
Income taxes paid | 830 | 562 |
Supplemental disclosure of non-cash information: | ||
Unpaid liability to acquire property and equipment | $ 962 | $ 1,414 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Jan. 31, 2021 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature of Operations and Basis of Presentation | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations Duluth Holdings Inc. (“Duluth Trading” or the “Company”), a Wisconsin corporation, is a lifestyle brand of men’s and women’s casual wear, workwear and accessories sold primarily through the Company’s own omnichannel platform. The Company’s products are marketed under the Duluth Trading Company brand, with the majority of products being exclusively developed and sold as Duluth Trading branded merchandise. The Company has historically identified two operating segments, direct and retail. The direct segment, consisting of the Company’s website and catalogs, offers products nationwide. In 2010, the Company initiated its omnichannel platform with the opening of its first store. Since then, Duluth Trading has expanded its retail presence, and as of January 31, 2021, the Company operated 62 retail stores and three outlet stores. The Company identifies its operating segments according to how its business activities are managed and evaluated. The Company continues to grow its omnichannel distribution network which allows the consumer to interact with the Company through a consistent customer experience whether on the Company website or at Company stores. As the Company expands its distribution network, and in conjunction with assessing the similar nature of products sold, production process, distribution process, target customers and economic characteristics between the two segments, the Company determined that the historical structure of separate reporting segments for direct and retail was no longer representative. Therefore, as of February 3, 2020, the Company updated its segment reporting to one reportable external segment, consistent with the Company’s omnichannel business approach. The Company’s revenues generated outside the United States were insignificant. The Company has two classes of authorized common stock: Class A common stock and Class B common stock. The rights of holders of Class A common stock and Class B common stock are identical, except for voting and conversion rights. Each share of Class A common stock is entitled to ten votes per share and is convertible at any time into one share of Class B common stock. Each share of Class B common stock is entitled to one vote per share. The Company’s Class B common stock trades on the NASDAQ Global Select Market under the symbol “DLTH.” Basis of Presentation The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on the Sunday nearest to January 31 of the following year. Fiscal 2020 and Fiscal 2019 ended on January 31, 2021 and February 2, 2020, respectively. Fiscal 2020 and Fiscal 2019 were a 52-week period. COVID-19 In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, led to significant travel and transportation restrictions, including mandatory business closures and orders to shelter in place. The Company’s business operations and financial performance for the year ended January 31, 2021 were impacted by COVID-19. These impacts are discussed within these notes to the consolidated financial statements. The ultimate impact of COVID-19 on our operational and financial performance still depends on future developments outside of our control. Given the uncertainty, we cannot reasonably estimate the continued impact on our business and whether that impact will be different than what we have already experienced. Seasonality of Business The Company’s business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its revenue and operating profit in the fourth fiscal quarter of each year as a result of increased sales during the holiday season. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements consist of the accounts of Duluth Holdings Inc. and TRI Holdings, LLC (“TRI”) as a variable interest entity. See Note 6 “Variable Interest Entities” for further information. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company’s revenue primarily consists of the sale of apparel, footwear and hard goods. Revenue for merchandise that is shipped to our customers from our distribution centers and stores is recognized upon shipment following customer payment, which is when the customer obtains control of the product and has the ability to direct the use of the product, including, among other options, the ability to redirect the product to a different shipping destination. Store revenue is recognized at the point of sale. The Company provides the customer the right of return on the product and revenue is adjusted based on an estimate of the expected returns based on historical rates as well as events that may cause changes to historical rates. See Note 5 “Accrued Expense and Other Liabilities” for the Company’s product returns reserve. Shipping and processing revenue generated from customer orders are included as a component of net sales and shipping and processing expense, including handling expense, is included as a component of selling, general and administrative expenses. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included in accrued expenses. A liability is recognized at the time a gift card is sold, and revenue is recognized at the time the gift card is redeemed for merchandise. See Note 8 “Revenue” for further information. Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in cost of goods sold and selling, general and administrative expenses: Cost of Goods Sold Selling, General and Administrative Expenses · Direct cost of purchased merchandise · Payroll and payroll-related expenses · Inventory shrinkage and inventory adjustments due to obsolescence · Third party logistics ("3PL") · Inbound freight · Occupancy expenses related to stores and operations at the Company's headquarters, including utilities · Freight from the Company's distribution centers to its stores · Depreciation and amortization · Advertising expenses including: television, digital and social media advertising; catalog production and mailing; and print advertising costs · Freight associated with shipping product to customers · Consulting and professional fees Advertising and Catalog Expenses The Company’s non-direct response advertising primarily consists of billboards, web marketing programs, social media and radio and television advertisements, which are expensed as they are incurred. The Company’s direct-response advertising consists of producing, printing and mailing catalogs, which are expensed upon receipt by customers. Advertising and Catalog expenses were $ 72.4 million and $ 93.9 million for fiscal 2020 and fiscal 2019, respectively. Shipping and Processing Shipping and processing revenue generated from customer orders has been classified as a component of net sales. Shipping and processing expense, including handling expense, has been classified as a component of selling, general and administrative expenses. Shipping and handling expenses increased in fiscal 2020 due to the shift to online shopping, as well as additional surcharges during our peak holiday season resulting from the strained distribution network. The Company incurred shipping and processing expenses of $ 46.9 million and $ 31.3 million for fiscal 2020 and fiscal 2019, respectively. Income Taxes The Company accounts for income taxes and related accounts using the liability method in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Under ASC 740, the Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between U.S. GAAP and tax bases of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse, and recognizes the effect of a change in enacted rates in the period of enactment. A valuation allowance is established if it is more likely than not that some portion or all of the deferred income tax asset will not be realized. The Company establishes assets and liabilities for uncertain tax positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. The Company recognizes penalties and interest related to uncertain tax positions as income tax expense. See Note 9 “Income Taxes,” of these Notes to Consolidated Financial Statements for further discussion. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. At various times during the year, the Company has certain cash balances deposited in financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes it is not exposed to any significant credit risk. Restricted Cash and Reconciliation of cash and cash equivalents and restricted cash to the statement of cash flows The Company’s restricted cash is held in escrow accounts and is used to pay a portion of the construction loans entered into by third party landlords (the “Landlords”) in connection with the Company’s retail store leases. The restricted cash is disbursed based on the escrow agreements entered into by and among the Landlords, the Company and the escrow agent. There was no restricted cash held in escrow accounts as of January 31, 2021. The Company considers short-term investments with original maturities of three months or less when purchased to be cash equivalents. Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows. January 31, 2021 February 2, 2020 (in thousands) Cash and cash equivalents $ 47,221 $ 2,189 Restricted Cash - 51 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 47,221 $ 2,240 Significant Suppliers The Company’s principal supplier of inventory accounted for 60 % and 54 % of total inventory expenditures in fiscal 2020 and fiscal 2019, respectively. The Company also had a second supplier that accounted for 10 % and 12 % of total inventory expenditures in fiscal 2020 and fiscal 2019, respectively. Inventories Inventory consists of finished goods stated at the lower of cost or net realizable value, with cost determined using the first-in, first-out valuation method. The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost. Inventory reserve for excess and obsolete items was $ 1.6 million and $ 1.8 million as of January 31, 2021 and February 2, 2020, respectively. Property and Equipment Property and equipment consist of the following: January 31, 2021 February 2, 2020 (in thousands) Land and land improvements $ 4,486 $ 4,486 Leasehold improvements 47,451 42,784 Buildings 35,344 35,905 Vehicles 161 161 Warehouse equipment 14,685 14,379 Office equipment and furniture 52,614 49,756 Computer equipment 9,861 8,135 Software 34,003 31,500 198,605 187,106 Accumulated depreciation and amortization ( 75,958 ) ( 53,255 ) 122,647 133,851 Construction in progress 1,590 3,220 Property and equipment, net $ 124,237 $ 137,071 The Company recorded depreciation expense of $ 24.2 million and $ 19.2 million for fiscal 2020 and fiscal 2019, respectively. The Company expenses as incurred all routine repair and maintenance costs that do not extend the estimated useful life of the asset. Property and equipment are carried at cost and are generally depreciated using the straight-line method over the estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or estimated useful life. Depreciable lives by major classification are as follows: Years Land improvements 15 - 40 Leasehold improvements 3 - 15 Buildings 39 Vehicles 5 - 10 Warehouse equipment 5 - 10 Office equipment and furniture 5 - 10 Computer equipment 3 - 5 Software 3 - 5 Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: January 31, 2021 February 2, 2020 (in thousands) Prepaid expenses & other current assets Pending returns inventory, net $ 2,490 $ 1,932 Current software hosting implementation costs, net 1,149 — Other prepaid expenses 6,564 7,571 Prepaid expenses & other current assets $ 10,203 $ 9,503 Other assets, net Goodwill $ 402 $ 402 Intangible assets, net 264 283 Non-current software hosting implementation costs 2,755 — Other assets, net 540 511 Other assets, net $ 3,961 $ 1,196 Software Hosting Implementation Costs Software hosting implementation costs includes costs of implementation activities of certain cloud computing arrangements in accordance with Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) . Amortization expense and accumulated amortization was $ 0.2 million for fiscal 2020. See Note 13 “Recent Accounting Pronouncements” for more information. Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired. ASC Topic 350, Intangibles-Goodwill and Other , requires that goodwill be tested for impairment annually, or more often if an event or circumstance indicates that an impairment loss may have been incurred. The Company’s management uses its judgment in assessing whether goodwill may have become impaired between annual impairment tests. Indicators such as unexpected adverse business conditions, economic factors, competitive activities, loss of key personnel and acts by governments may signal that an asset has become impaired. The Company determined that the effects of COVID-19 may represent indicators of asset impairment, and as a result performed an interim qualitative assessment for the Company’s goodwill at May 3, 2020. The Company determined that it was more likely than not that the fair value was greater than its carrying value and no impairment loss had been incurred. There were no triggering events subsequent to the quarter ended May 3, 2020 and through the year ended January 31, 2021. Management performed its annual qualitative assessment of goodwill as of December 31, 2020 and 2019 and determined that it was more likely than not that the fair value of the Company was greater than its carrying amount; as such, no further evaluation of goodwill was deemed necessary. No impairment was recognized for the years ended January 31, 2021 or February 2, 2020. Intangible Assets and Other Assets Intangible assets and other assets include loan origination fees and trade names which are amortized over their estimated useful lives ranging from three years to fifteen years . Other assets also include security deposits required by certain of the Company’s lease agreements and prepaid expenses. Amortization expense was $ 0.2 million for fiscal 2020 and $ 0.1 million for fiscal 2019. Accumulated amortization was $ 0.7 million and $ 0.5 million as of January 31, 2021 and February 2, 2020, respectively. Scheduled future amortization of amortizable other assets are as follows as of January 31, 2021: Fiscal year (in thousands) 2021 $ 210 2022 193 2023 71 2024 18 2025 17 Thereafter 28 $ 537 Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment during the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and the carrying value of the asset or group of assets. Such analyses necessarily involve judgment. The Company determined that the effects of COVID-19 may represent indicators of asset impairment, and as a result, performed an interim impairment assessment at May 3, 2020. In the first fiscal quarter of 2020, the Company performed undiscounted cash flow analyses on certain long-lived assets, including retail stores at the individual store level and determined that the estimated undiscounted future cash flows exceeded the net carrying values. There were no triggering events subsequent to the quarter ended May 3, 2020 and through the year ended January 31, 2021. Consequently, there were no long-lived asset impairment charges recorded for fiscal 2020. For fiscal 2019, management did not identify any events or changes in circumstances that indicated the potential impairment of long-lived assets. Store Pre-opening Costs Store pre-opening costs are expensed as incurred and are included in selling, general and administrative expenses. Stock-Based Compensation In connection with the IPO, the Company adopted the 2015 Equity Incentive Plan of Duluth Holdings Inc. (“2015 Plan”), which provides compensation alternatives such as stock options, shares, restricted stock, restricted stock units, deferred stock and performance share units, using or based on the Company’s Class B common stock. The Company accounts for its stock-based compensation plan in accordance with ASC Topic 718, Stock Compensation , which requires the Company to measure all share-based payments at grant date fair value and recognize the cost over the requisite service period of the award. Restricted stock issued to board members generally vests over a period of one year . Restricted stock issued to key employees and executives typically vests over a period of three years to five years based on the terms for each individual award. The fair value of the restricted stock is determined based on the market value of the Company’s Class B common stock on the grant date. Restricted stock forfeitures are recognized as incurred. Total stock compensation expense associated with restricted stock recognized by the Company was $ 1.5 million and $ 0.5 million for fiscal 2020 and fiscal 2019, respectively, and is included in selling, general and administrative expenses on the Consolidated Statements of Operations. The following is a summary of the activity in the Company’s unvested restricted stock during the years ended January 31, 2021 and February 2, 2020: Weighted average grant date fair value Shares per share Outstanding at February 3, 2019 321,657 14.29 Granted 165,730 17.67 Vested ( 61,647 ) 18.90 Forfeited ( 233,646 ) 12.65 Outstanding at February 2, 2020 192,094 17.71 Granted 283,063 7.13 Vested ( 120,592 ) 16.21 Forfeited ( 16,326 ) 10.42 Outstanding at January 31, 2021 338,239 $ 9.74 At January 31, 2021, the Company had unrecognized compensation expense of $ 2.2 million related to the restricted stock awards, which is expected to be recognized over a weighted average period of 2.4 years. Treasury Stock Treasury stock consists of shares withheld in lieu of tax payments when restricted stock vests using the treasury cost method and is classified in the Consolidated Balance Sheets as a reduction to shareholders’ equity. Taxes Collected from Customers The Company presents all non-income government-assessed taxes (sales, use and value-added taxes) collected from its customers and remitted to governmental agencies on a net basis (excluded from revenue) in its consolidated financial statements. Other Comprehensive Income Other comprehensive income or loss represents the change in equity from non-shareholder or non-member transactions, which is not included in the statements of earnings but is reported as a separate component of shareholders’ equity. For fiscal 2020 and fiscal 2019, other comprehensive income consists of changes in unrealized gains and losses on available-for-sale securities, net of taxes. Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) , defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., an exit price). The exit price is based on the amount that the holder of the asset or liability would receive or need to pay in an actual transaction (or in a hypothetical transaction if an actual transaction does not exist) at the measurement date. ASC 820 describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable, as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices 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 assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of the Company’s available-for-sale security was valued based on a discounted cash flow method (Level 3), which incorporates the U.S. Treasury yield curve, credit information and an estimate of future cash flows. During fiscal 2020, certain changes in the inputs did impact the fair value of the available-for-sale security. The calculated fair value is based on estimates that are subjective in nature and involve uncertainties and matters of significant judgement and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The amortized cost and fair value of the Company’s available-for-sale security and the corresponding amount of gross unrealized gains and losses recognized in accumulated other comprehensive income are as follows. January 31, 2021 Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) Level 3 security: Corporate trust $ 6,047 $ 64 $ $ 6,111 February 2, 2020 Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) Level 3 security: Corporate trust $ 6,178 $ 254 $ $ 6,432 The Company does not intend to sell the available-for-sale-security in the near term and does not believe that it will be required to sell the security. The Company reviews its security on a quarterly basis to monitor its exposure to other-than-temporary impairment. No other-than-temporary impairment was recorded in the Consolidated Statements of Operations in fiscal 2020 or fiscal 2019. The following table presents the future receipts related to the Company’s available-for-sale security by contractual maturity as of January 31, 2021. Amortized Estimated Cost Fair Value (in thousands) Within one year $ 147 $ 150 After one year through five years 1,004 1,022 After five years through ten years 1,563 1,581 After ten years 3,333 3,358 Total $ 6,047 $ 6,111 The carrying values and fair values of other financial instruments in the Consolidated Balance Sheets are as follows: January 31, 2021 February 2, 2020 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value TRI Long-term debt, including short-term portion $ 27,852 $ 28,697 $ 28,335 $ 30,238 The above long-term debt, including short-term portion is attributable to the consolidation of TRI in accordance with ASC Topic 810, Consolidation . The fair value was also based on a discounted cash flow method (Level 3) based on credit information and an estimate of future cash flows. As of January 31, 2021, and February 2, 2020, the carrying values of the long-term delayed draw term loan and long-term line of credit both approximated its fair value. Reclassifications Certain reclassifications have been made to the 2019 financial statements in order to conform to the 2020 presentation. There were no changes to previously reported shareholders' equity or net income as a result of the reclassifications. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Leases | 3. LEASES Based on the criteria set forth in ASC Topic 842, Leases (“ASC 842”), the Company recognizes ROU assets and lease liabilities related to leases on the Company’s Consolidated Balance Sheets. The Company determines if an arrangement is, or contains, a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities reflect the obligation to make lease payments arising from the lease. At any given time during the lease term, the lease liability represents the present value of the remaining lease payments and the ROU asset is measured at the amount of the lease liability, adjusted for pre-paid rent, unamortized initial direct costs and the remaining balance of lease incentives received. Both the lease ROU asset and liability are reduced to zero at the end of the lease. The Company leases retail space under non-cancelable lease agreements, which expire on various dates through 2036. Substantially all of these arrangements are store leases. Store leases generally have initial lease terms ranging from five years to fifteen years with renewal options and rent escalation provisions. At the commencement of a lease, the Company includes only the initial lease term as the option to extend is not reasonably certain. The Company does not record leases with a lease term of 12 months or less on the Company’s Consolidated Balance Sheets. When calculating the lease liability on a discounted basis, the Company applies its estimated discount rate. The Company bases this discount rate on a collateralized interest rate as well as publicly available data for instruments with similar characteristics. In addition to rent payments, leases for retail space contain payments for real estate taxes, insurance costs, common area maintenance, and utilities that are not fixed. The Company accounts for these costs as variable payments and does not include such costs as a lease component. Due to the adverse impacts of COVID-19, the Company has negotiated rent deferral and payback periods with a number of the Company’s store landlords for the months of April and May 2020. Based on the guidance set forth in the Financial Accounting Standards Board (“FASB”) issued Staff Q&A “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” the Company has accounted for these deferrals as if no changes to the lease contract were made and will not elect to apply the lease modification guidance under ASC 842. As of January 31, 2021 the Company has deferred rent of approximately $ 0.8 million which was recorded within accrued expenses and other current liabilities and will be paid in accordance with the concession arrangements. The expense components of the Company’s leases reflected on the Company’s Consolidated Statement of Operations were as follows: Consolidated Statement of Operations January 31, 2021 February 2, 2020 (in thousands) Finance lease Amortization of right-of-use assets Selling, general and administrative expenses $ 2,929 $ 1,362 Interest on lease liabilities Interest expense 1,858 1,230 Total finance lease expense $ 4,787 $ 2,592 Operating lease expense Selling, general and administrative expenses $ 16,141 $ 15,636 Amortization of build-to-suit leases capital contribution Selling, general and administrative expenses 1,309 1,129 Variable lease expense Selling, general and administrative expenses 9,453 7,347 Total lease expense $ 31,690 $ 26,704 Other information related to leases were as follows: January 31, 2021 February 2, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,958 $ 891 Operating cash flows from finance leases $ 1,858 $ 1,230 Operating cash flows from operating leases $ 15,652 $ 13,621 Right-of-use assets obtained in exchange for lease liabilities: Finance leases $ 8,966 $ 41,566 Operating leases $ 11,642 $ 17,629 Weighted-average remaining lease term (in years): Finance leases 13 15 Operating leases 9 10 Weighted-average discount rate: Finance leases 4.4 % 4.5 % Operating leases 4.3 % 4.3 % Future minimum lease payments under the non-cancellable leases are as follows as of January 31, 2021 : Finance Operating Fiscal year Leases Leases (in thousands) 2021 $ 4,575 $ 15,721 2022 4,554 15,851 2023 4,582 16,033 2024 4,769 15,383 2025 5,133 14,593 Thereafter 37,522 63,427 Total future minimum lease payments $ 61,135 $ 141,008 Less - Discount 15,207 25,671 Lease liability $ 45,928 $ 115,337 Total rent expense under non-cancellable leases was $ 17.1 million and $ 16.2 million for fiscal 2020 and fiscal 2019, respectively. |
Debt and Credit Agreement
Debt and Credit Agreement | 12 Months Ended |
Jan. 31, 2021 | |
Debt and Credit Agreement [Abstract] | |
Debt and Credit Agreement | 4. DEBT AND CREDIT AGREEMENT Debt consists of the following: January 31, 2021 February 2, 2020 (in thousands) TRI Senior Secured Note $ 24,352 $ 24,835 TRI Note 3,500 3,500 $ 27,852 $ 28,335 Less: current maturities 623 557 TRI Long-term debt $ 27,229 $ 27,778 Duluth Line of credit $ — $ 19,332 Duluth Delayed draw term loan 48,250 20,000 $ 48,250 $ 39,332 Less: current maturities 2,500 1,000 Duluth long-term debt $ 45,750 $ 38,332 TRI Holdings, LLC TRI entered into a senior secured note (“TRI Senior Secured Note”) with an original balance of $ 26.7 million. The TRI Senior Secured Note is scheduled to mature on October 15, 2038 and requires installment payments with an interest rate of 4.95 %. See Note 6 “Variable Interest Entities” for further information. TRI entered into a promissory note (“TRI Note”) with an original balance of $ 3.5 million. The TRI Note is scheduled to mature in November 2038 and requires annual interest payments at a rate of 3.05 %, with a final balloon payment due in November 2038. While the above notes are consolidated in accordance with ASC Topic 810, Consolidation , the Company is not the guarantor nor the obligor of these notes. Credit Agreement On May 17, 2018, the Company entered into a credit agreement (the “Credit Agreement”) which provides for borrowing availability of up to $ 80.0 million in revolving credit and associated swing line (the “Revolver”) and borrowing availability of up to $ 50.0 million in a delayed draw term loan (“DDTL”), for a total credit facility of $ 130.0 million. The $ 80.0 million revolving credit matures on May 17, 2023 . The $50.0 million DDTL was available to draw upon in differing amounts through May 16, 2020 and matures on May 17, 2023 . Outstanding balances under the DDTL require quarterly principal payments with a final balloon payment at maturity. The Credit Agreement is secured by essentially all Company assets and requires the Company to maintain compliance with certain financial and non-financial covenants, including a maximum rent adjusted leverage ratio and a minimum fixed charge coverage ratio as defined in the Credit Agreement. On April 30, 2020, the Credit Agreement was amended to include an incremental DDTL of $ 20.5 million (the “Incremental DDTL”) that is available to draw upon before March 31, 2021, and matures on April 29, 2021 , for a total credit facility of $ 150.5 million. As of and for the fiscal year ended January 31, 2021, no amount of the Incremental DDTL was funded. The loan covenants were also amended to allow for greater flexibility during the Company’s peak borrowing periods in fiscal 2020. The interest rate applicable to the Revolver or DDTL will be a fixed rate for a one-, two-, three- or six-month interest period equal to LIBOR (with a 1 % floor) for such interest period plus a margin of 225 to 300 basis points, based upon the Company’s rent adjusted leverage ratio (effective rate of 3.5 % for the Revolver and the DDTL at January 31, 2021). The interest rate applicable to the Incremental DDTL will also be a fixed rate over the aforementioned interest periods equal to LIBOR (with a 1 % floor) for such interest period plus a margin of 275 to 350 basis points. As of January 31, 2021, and for the fiscal year then ended, the Company was in compliance with all financial and non-financial covenants for all debts discussed above. Future principal maturities of all TRI debt, excluding financing fees of $ 1.3 million associated with the TRI debt, and the Company’s Credit Agreement, are as follows as of January 31, 2021: Fiscal year (in thousands) 2021 $ 3,123 2022 3,193 2023 44,018 2024 847 2025 931 Thereafter 25,292 $ 77,404 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 31, 2021 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: January 31, 2021 February 2, 2020 (in thousands) Salaries and benefits $ 8,826 $ 2,775 Deferred revenue 9,944 9,946 Freight 6,769 5,404 Product returns 5,304 3,508 Catalog costs 396 542 Unpaid purchases of property & equipment 503 971 Accrued advertising 981 633 Other 4,963 5,685 Total accrued expenses and other current liabilities $ 37,686 $ 29,464 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Jan. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 6. VARIABLE INTEREST ENTITIES Based upon the criteria set forth in ASC 810, Consolidation , the Company consolidates variable interest entities (“VIEs”) in which it has a controlling financial interest and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. The Company has determined that it was the primary beneficiary of one VIE as of January 31, 2021 and February 2, 2020. The Company leases the Company’s headquarters in Mt. Horeb, Wisconsin from TRI. In conjunction with the lease, the Company originally invested $ 6.3 million in a trust that loaned funds to TRI for the construction of the Company’s headquarters. TRI is a Wisconsin limited liability company whose primary purpose and activity is to own this real property. The Company considers itself the primary beneficiary for TRI as the Company has both the power to direct the activities that most significantly impact the entity’s economic performance and is expected to receive benefits that are significant to TRI. As the Company is the primary beneficiary, it consolidates TRI and the lease is eliminated in consolidation. The Company does not consolidate the trust as the Company is not the primary beneficiary. The Consolidated Balance Sheets include the following amounts as a result of the consolidation of TRI as of January 31, 2021 and February 2, 2020. January 31, 2021 February 2, 2020 (in thousands) Cash $ 747 $ 279 Property and equipment, net 24,800 25,981 Total assets $ 25,547 $ 26,260 Other current liabilities $ 58 $ 91 Current maturities of TRI long-term debt 623 557 TRI long-term debt 27,229 27,778 Noncontrolling interest in VIE ( 2,363 ) ( 2,166 ) Total liabilities and shareholders' equity $ 25,547 $ 26,260 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 7. EARNINGS PER SHARE Earnings per share is computed under the provisions of ASC 260 , Earnings Per Share . Basic earnings per share is based on the weighted average number of common shares outstanding for the period. Diluted earnings per share is based on the weighted average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding restricted stock and are considered only for dilutive earnings per share unless considered anti-dilutive. The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation is as follows: Fiscal Year Ended January 31, 2021 February 2, 2020 (in thousands, except per share data) Numerator - net income attributable to controlling interest $ 13,577 $ 18,921 Denominator - weighted average shares (Class A and Class B) Basic 32,447 32,309 Dilutive shares 133 62 Diluted 32,580 32,371 Earnings per share (Class A and Class B) Basic $ 0.42 $ 0.59 Diluted $ 0.42 $ 0.58 |
Revenue
Revenue | 12 Months Ended |
Jan. 31, 2021 | |
Revenue [Abstract] | |
Revenue | 8. REVENUE The Company’s revenue primarily consists of the sale of apparel, footwear and hard goods. Revenue for merchandise that is shipped to our customers from our distribution centers and stores is recognized upon shipment. Store revenue is recognized at the point of sale, net of returns, and excludes taxes. Shipping and processing revenue generated from customer orders are included as a component of net sales and shipping and processing expense, including handling expense, is included as a component of selling, general and administrative expenses. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included in accrued expenses. Sales disaggregated based upon sales channel is presented below. January 31, 2021 February 2, 2020 (in thousands) Direct-to-consumer $ 460,839 $ 350,371 Stores 177,944 265,253 $ 638,783 $ 615,624 Contract Assets and Liabilities The Company’s contract assets primarily consist of the right of return for amounts of inventory to be returned that is expected to be resold and is recorded in Prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets. The Company’s contract liabilities primarily consist of gift card liabilities and are recorded upon issuance in Accrued expenses and other current liabilities under deferred revenue (see Note 5 “Accrued Expenses and Other Current Liabilities”) on the Company’s Consolidated Balance Sheets. Upon issuance of a gift card, a liability is established for its cash value. The gift card liability is relieved and revenues on gift cards are recorded at the time of redemption by the customer. Contract assets and liabilities on the Company’s Consolidated Balance Sheets are presented in the following table: January 31, 2021 February 2, 2020 (in thousands) Contract assets $ 2,490 $ 1,932 Contract liabilities $ 9,788 $ 9,790 Revenue from gift cards is recognized when the gift card is redeemed by the customer for merchandise, or as gift card breakage, an estimate of gift cards which will not be redeemed. The Company does not record breakage revenue when escheat liability to the relevant jurisdictions exists. Gift card breakage is recorded within Net sales on the Company’s Consolidated Statement of Operations. The following table provides the reconciliation of the contract liability related to gift cards: January 31, 2021 February 2, 2020 (in thousands) Balance as of Beginning of Period $ 9,790 $ 8,508 Gift cards sold 17,098 17,523 Gift cards redeemed ( 14,766 ) ( 15,137 ) Gift card breakage ( 2,334 ) ( 1,047 ) Gift card escheat - ( 57 ) Balance as of End of Period $ 9,788 $ 9,790 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 9. INCOME TAXES The components of income tax expense were as follows: Fiscal Year Ended January 31, 2021 February 2, 2020 (in thousands) Current: Federal $ 3,350 $ 4,727 State 1,283 1,308 4,633 6,035 Noncurrent: Federal $ 168 $ — State 91 — 259 — Deferred: Federal 353 ( 568 ) State ( 608 ) ( 38 ) ( 255 ) ( 606 ) Total income tax expense $ 4,637 $ 5,429 The tax effects of unrealized gains and losses on securities are components of other comprehensive income and therefore excluded from deferred tax expense. The reconciliation of income tax expense to the amount computed at the federal statutory rate was as follows: Fiscal Year Ended January 31, 2021 February 2, 2020 (in thousands) Federal taxes at statutory rate $ 3,824 21.0 % $ 5,114 21.0 % State and local income taxes, net of federal benefit 786 4.3 % 965 4.0 % Research and development tax credits ( 151 ) ( 0.8 ) % ( 487 ) ( 2.0 ) % Other 178 1.0 % ( 163 ) ( 0.7 ) % Total income tax expense $ 4,637 25.5 % $ 5,429 22.3 % Deferred income taxes reflect the net tax effects of temporary differences between U.S. GAAP and tax bases of assets and liabilities. Significant components of deferred tax assets and liabilities were as follows: January 31, 2021 February 2, 2020 (in thousands) Deferred tax assets: Returns allowance $ 1,330 $ 912 Uniform capitalization 3,425 2,930 Deferred rent 205 — Accruals 1,841 388 Stock-based compensation 231 352 Advance payments 685 820 Unrecognized tax benefits 2 — Total deferred tax assets 7,719 5,402 Deferred tax liabilities: Property and equipment 13,202 10,346 Unrealized gain on investment 16 66 Inventory 223 27 Prepaid expenses 868 857 Goodwill and intangibles 66 66 Capital lease 1,454 2,358 Revenue recognition method adjustment 90 187 Total deferred tax liabilities 15,919 13,907 Net deferred tax liabilities $ 8,200 $ 8,505 Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: January 31, 2021 February 2, 2020 (in thousands) Balance beginning of year $ — $ — Additions for tax positions in prior year 214 — Additions for tax positions in current year 45 — Balance at end of year $ 259 $ — If recognized, $ 0.3 million of the Company’s unrecognized tax benefits as of January 31, 2021, would affect the Company’s effective tax rate. The Company does not anticipate that there will be a material change in the balance of the unrecognized tax benefits in the next 12 months. Any interest and penalties related to uncertain tax positions are recorded in income tax expense. There were no amounts recorded as tax expense for interest or penalties for the years ended February 2, 2020. The Company files income tax returns in the United States federal jurisdiction and in various state jurisdictions. Federal tax returns for tax years beginning January 1, 2017 , and state tax returns for tax years beginning January 1, 2016 , are open for examination. CARES Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed. The CARES Act, among other things, included provisions relating to refundable payroll tax credits, deferment of employer social security payments, alternative minimum tax credit refunds and modifications to net interest deduction limitations. The Company has concluded the analysis of these provisions as of year-end and the CARES Act did not have a material impact on the Company’s income taxes for the year ended January 31, 2021. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Jan. 31, 2021 | |
Retirement Plan [Abstract] | |
Retirement Plan | 10. RETIREMENT PLAN The Company has a contributory 401(k) profit sharing plan (the “Plan”) which covers all employees who have attained age 21 and who have met minimum service requirements. The Company makes quarterly non-discretionary “safe harbor” matching contributions to the Plan equal to 100 % of the basic contribution made by each participant on the first 3 % of his or her compensation plus 50 % of the basic contribution made by each participant on the next 2 % of his or her compensation. The Company is also permitted to make discretionary profit sharing contributions to the Plan. There were no profit sharing contributions for the plan year ended December 31, 2020. The Company’s total expenses under the Plan were $ 1.6 million and $ 1.5 million for fiscal 2020 and fiscal 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES From time to time, the Company becomes involved in lawsuits and other claims arising from its ordinary course of business. Because of the uncertainties related to the incurrence, amount and range of loss on any pending litigation or claim, management is currently unable to predict the ultimate outcome of any litigation or claim, determine whether a liability has been incurred or make an estimate of the reasonably possible liability that could result from an unfavorable outcome. Management believes, after considering a number of factors and the nature of any outstanding litigation or claims, that the outcome will not have a material effect upon the Company’s results of operations, financial condition or cash flows. However, because of the unpredictable nature of these matters, the Company cannot provide any assurances regarding the outcome of any litigation or claim to which it is a party or the impact on it of an adverse ruling in such matters. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jan. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | 12. QUARTERLY FINANCIAL DATA (UNAUDITED) Fiscal 2020 First Quarter % of Net Sales Second Quarter % of Net Sales Third Quarter % of Net Sales Fourth Quarter % of Net Sales (in thousands, except earnings per share) Net sales $ 109,917 100.0 % $ 137,375 100.0 % $ 135,531 100.0 % $ 255,960 100.0 % Gross profit 52,332 47.6 % 72,472 52.8 % 71,037 52.4 % 135,685 53.0 % Operating (loss) income ( 18,974 ) ( 17.3 )% 9,792 7.1 % 2,848 2.1 % 30,549 11.9 % Net (loss) income attributable to controlling interest ( 15,135 ) ( 13.8 )% 5,941 4.3 % 940 0.7 % 21,831 8.5 % Basic (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.47 ) 0.18 0.03 0.67 Diluted (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.47 ) 0.18 0.03 0.67 Fiscal 2019 First Quarter % of Net Sales Second Quarter % of Net Sales Third Quarter % of Net Sales Fourth Quarter % of Net Sales (in thousands, except earnings per share) Net sales $ 114,244 100.0 % $ 121,963 100.0 % $ 119,768 100.0 % $ 259,649 100.0 % Gross profit 60,918 53.3 % 64,804 53.1 % 65,365 54.6 % 137,062 52.8 % Operating (loss) income ( 10,104 ) ( 8.8 )% 3,735 3.1 % 1,328 1.1 % 33,149 12.8 % Net (loss) income attributable to controlling interest ( 7,572 ) ( 6.6 )% 1,936 1.6 % 182 0.2 % 24,375 9.4 % Basic (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.23 ) 0.06 0.01 0.75 Diluted (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.23 ) 0.06 0.01 0.75 Subsequent to the issuance of the May 5, 2019 interim financial statements, the Company identified a reclass error for disclosure purposes between selling, general and administration and interest expense, which had no impact on net income for the May 5, 2019 unaudited Consolidated Statement of Operations. The reclass error has been corrected in the above table. The Company assessed the reclass error and determined it is immaterial to the interim financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2021 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 13. RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Intangibles – Goodwill and Other – Internal-use Software On February 3, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) (“ASU 2018-15”) which provides additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the new internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The new internal-use software guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as they are incurred. The Company adopted ASU 2018-15 using the prospective method. In fiscal 2020, $ 3.9 million of capitalized costs associated with implementation activities, net of amortization are classified within Prepaid expenses & other current assets on the Company’s Consolidated Balance Sheets and $ 0.2 million of related amortization costs are included in Selling, general and administrative expenses on the Company’s Consolidated Statement of Operations. Recently Issued Accounting Pronouncements Not Yet Adopted Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standards Update No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (“ASU 2016-13”), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses, otherwise known as “CECL”. In addition, this guidance changes the recognition for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk and requires additional disclosures. On November 15, 2019, the FASB issued ASU No. 2019-10 “Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815, and Leases (Topic 842),” (ASU 2019-10”), which provides framework to stagger effective dates for future major accounting standards and amends the effective dates for certain major new accounting standards to give implementation relief to certain types of entities. ASU 2019-10 amends the effective dates for ASU 2016-13 for smaller reporting companies with fiscal years beginning after December 15, 2022, and interim periods within those years. The Company expects to adopt ASU 2016-13 on January 30, 2023, the first day of the Company’s first quarter for the fiscal year ending January 28, 2024, the Company’s fiscal year 2023. The Company is evaluating the level of impact adopting ASU 2016-13 will have on the Company’s consolidated financial statements. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2021 | |
Schedule II Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | DULUTH HOLDINGS INC. SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS For the Years Ended January 31, 2021 and February 2, 2020 (Amounts in thousands) Charged to Charged to Beginning Cost and Other Ending Balance Expenses Accounts Deductions Balance Inventory reserve Year ended January 31, 2021 $ 1,826 $ — $ — $ ( 226 ) $ 1,600 Year ended February 2, 2020 2,420 — — ( 594 ) 1,826 Product returns reserve Year ended January 31, 2021 $ 3,508 $ 1,796 $ — $ — $ 5,304 Year ended February 2, 2020 2,088 1,420 — — 3,508 See accompanying Report of Independent Registered Public Accounting Firm. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policy) | 12 Months Ended |
Jan. 31, 2021 | |
Nature of Operations and Basis of Presentation [Abstract] | |
Nature of Operations | Nature of Operations Duluth Holdings Inc. (“Duluth Trading” or the “Company”), a Wisconsin corporation, is a lifestyle brand of men’s and women’s casual wear, workwear and accessories sold primarily through the Company’s own omnichannel platform. The Company’s products are marketed under the Duluth Trading Company brand, with the majority of products being exclusively developed and sold as Duluth Trading branded merchandise. The Company has historically identified two operating segments, direct and retail. The direct segment, consisting of the Company’s website and catalogs, offers products nationwide. In 2010, the Company initiated its omnichannel platform with the opening of its first store. Since then, Duluth Trading has expanded its retail presence, and as of January 31, 2021, the Company operated 62 retail stores and three outlet stores. The Company identifies its operating segments according to how its business activities are managed and evaluated. The Company continues to grow its omnichannel distribution network which allows the consumer to interact with the Company through a consistent customer experience whether on the Company website or at Company stores. As the Company expands its distribution network, and in conjunction with assessing the similar nature of products sold, production process, distribution process, target customers and economic characteristics between the two segments, the Company determined that the historical structure of separate reporting segments for direct and retail was no longer representative. Therefore, as of February 3, 2020, the Company updated its segment reporting to one reportable external segment, consistent with the Company’s omnichannel business approach. The Company’s revenues generated outside the United States were insignificant. The Company has two classes of authorized common stock: Class A common stock and Class B common stock. The rights of holders of Class A common stock and Class B common stock are identical, except for voting and conversion rights. Each share of Class A common stock is entitled to ten votes per share and is convertible at any time into one share of Class B common stock. Each share of Class B common stock is entitled to one vote per share. The Company’s Class B common stock trades on the NASDAQ Global Select Market under the symbol “DLTH.” |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on the Sunday nearest to January 31 of the following year. Fiscal 2020 and Fiscal 2019 ended on January 31, 2021 and February 2, 2020, respectively. Fiscal 2020 and Fiscal 2019 were a 52-week period. |
Covid-19 | COVID-19 In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, led to significant travel and transportation restrictions, including mandatory business closures and orders to shelter in place. The Company’s business operations and financial performance for the year ended January 31, 2021 were impacted by COVID-19. These impacts are discussed within these notes to the consolidated financial statements. The ultimate impact of COVID-19 on our operational and financial performance still depends on future developments outside of our control. Given the uncertainty, we cannot reasonably estimate the continued impact on our business and whether that impact will be different than what we have already experienced. |
Seasonality of Business | Seasonality of Business The Company’s business is affected by the pattern of seasonality common to most retail apparel businesses. Historically, the Company has recognized a significant portion of its revenue and operating profit in the fourth fiscal quarter of each year as a result of increased sales during the holiday season. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jan. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements consist of the accounts of Duluth Holdings Inc. and TRI Holdings, LLC (“TRI”) as a variable interest entity. See Note 6 “Variable Interest Entities” for further information. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company’s revenue primarily consists of the sale of apparel, footwear and hard goods. Revenue for merchandise that is shipped to our customers from our distribution centers and stores is recognized upon shipment following customer payment, which is when the customer obtains control of the product and has the ability to direct the use of the product, including, among other options, the ability to redirect the product to a different shipping destination. Store revenue is recognized at the point of sale. The Company provides the customer the right of return on the product and revenue is adjusted based on an estimate of the expected returns based on historical rates as well as events that may cause changes to historical rates. See Note 5 “Accrued Expense and Other Liabilities” for the Company’s product returns reserve. Shipping and processing revenue generated from customer orders are included as a component of net sales and shipping and processing expense, including handling expense, is included as a component of selling, general and administrative expenses. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included in accrued expenses. A liability is recognized at the time a gift card is sold, and revenue is recognized at the time the gift card is redeemed for merchandise. See Note 8 “Revenue” for further information. |
Cost of Goods Sold and Selling, General and Administrative Expenses | Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in cost of goods sold and selling, general and administrative expenses: Cost of Goods Sold Selling, General and Administrative Expenses · Direct cost of purchased merchandise · Payroll and payroll-related expenses · Inventory shrinkage and inventory adjustments due to obsolescence · Third party logistics ("3PL") · Inbound freight · Occupancy expenses related to stores and operations at the Company's headquarters, including utilities · Freight from the Company's distribution centers to its stores · Depreciation and amortization · Advertising expenses including: television, digital and social media advertising; catalog production and mailing; and print advertising costs · Freight associated with shipping product to customers · Consulting and professional fees |
Advertising and Catalog Expenses | Cost of Goods Sold Selling, General and Administrative Expenses · Direct cost of purchased merchandise · Payroll and payroll-related expenses · Inventory shrinkage and inventory adjustments due to obsolescence · Third party logistics ("3PL") · Inbound freight · Occupancy expenses related to stores and operations at the Company's headquarters, including utilities · Freight from the Company's distribution centers to its stores · Depreciation and amortization · Advertising expenses including: television, digital and social media advertising; catalog production and mailing; and print advertising costs · Freight associated with shipping product to customers · Consulting and professional fees Advertising and Catalog Expenses The Company’s non-direct response advertising primarily consists of billboards, web marketing programs, social media and radio and television advertisements, which are expensed as they are incurred. The Company’s direct-response advertising consists of producing, printing and mailing catalogs, which are expensed upon receipt by customers. Advertising and Catalog expenses were $ 72.4 million and $ 93.9 million for fiscal 2020 and fiscal 2019, respectively. |
Shipping and Processing | Shipping and Processing Shipping and processing revenue generated from customer orders has been classified as a component of net sales. Shipping and processing expense, including handling expense, has been classified as a component of selling, general and administrative expenses. Shipping and handling expenses increased in fiscal 2020 due to the shift to online shopping, as well as additional surcharges during our peak holiday season resulting from the strained distribution network. The Company incurred shipping and processing expenses of $ 46.9 million and $ 31.3 million for fiscal 2020 and fiscal 2019, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes and related accounts using the liability method in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Under ASC 740, the Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between U.S. GAAP and tax bases of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse, and recognizes the effect of a change in enacted rates in the period of enactment. A valuation allowance is established if it is more likely than not that some portion or all of the deferred income tax asset will not be realized. The Company establishes assets and liabilities for uncertain tax positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. The Company recognizes penalties and interest related to uncertain tax positions as income tax expense. See Note 9 “Income Taxes,” of these Notes to Consolidated Financial Statements for further discussion. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. At various times during the year, the Company has certain cash balances deposited in financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes it is not exposed to any significant credit risk. |
Restricted Cash and Reconciliation of Cash and Cash Equivalents and Restricted Cash to the Statement of Cash Flows | Restricted Cash and Reconciliation of cash and cash equivalents and restricted cash to the statement of cash flows The Company’s restricted cash is held in escrow accounts and is used to pay a portion of the construction loans entered into by third party landlords (the “Landlords”) in connection with the Company’s retail store leases. The restricted cash is disbursed based on the escrow agreements entered into by and among the Landlords, the Company and the escrow agent. There was no restricted cash held in escrow accounts as of January 31, 2021. The Company considers short-term investments with original maturities of three months or less when purchased to be cash equivalents. Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows. January 31, 2021 February 2, 2020 (in thousands) Cash and cash equivalents $ 47,221 $ 2,189 Restricted Cash - 51 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 47,221 $ 2,240 |
Significant Suppliers | January 31, 2021 February 2, 2020 (in thousands) Cash and cash equivalents $ 47,221 $ 2,189 Restricted Cash - 51 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 47,221 $ 2,240 Significant Suppliers The Company’s principal supplier of inventory accounted for 60 % and 54 % of total inventory expenditures in fiscal 2020 and fiscal 2019, respectively. The Company also had a second supplier that accounted for 10 % and 12 % of total inventory expenditures in fiscal 2020 and fiscal 2019, respectively. |
Inventories | Inventories Inventory consists of finished goods stated at the lower of cost or net realizable value, with cost determined using the first-in, first-out valuation method. The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost. Inventory reserve for excess and obsolete items was $ 1.6 million and $ 1.8 million as of January 31, 2021 and February 2, 2020, respectively. |
Property and Equipment | Property and Equipment Property and equipment consist of the following: January 31, 2021 February 2, 2020 (in thousands) Land and land improvements $ 4,486 $ 4,486 Leasehold improvements 47,451 42,784 Buildings 35,344 35,905 Vehicles 161 161 Warehouse equipment 14,685 14,379 Office equipment and furniture 52,614 49,756 Computer equipment 9,861 8,135 Software 34,003 31,500 198,605 187,106 Accumulated depreciation and amortization ( 75,958 ) ( 53,255 ) 122,647 133,851 Construction in progress 1,590 3,220 Property and equipment, net $ 124,237 $ 137,071 The Company recorded depreciation expense of $ 24.2 million and $ 19.2 million for fiscal 2020 and fiscal 2019, respectively. The Company expenses as incurred all routine repair and maintenance costs that do not extend the estimated useful life of the asset. Property and equipment are carried at cost and are generally depreciated using the straight-line method over the estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or estimated useful life. Depreciable lives by major classification are as follows: Years Land improvements 15 - 40 Leasehold improvements 3 - 15 Buildings 39 Vehicles 5 - 10 Warehouse equipment 5 - 10 Office equipment and furniture 5 - 10 Computer equipment 3 - 5 Software 3 - 5 |
Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: January 31, 2021 February 2, 2020 (in thousands) Prepaid expenses & other current assets Pending returns inventory, net $ 2,490 $ 1,932 Current software hosting implementation costs, net 1,149 — Other prepaid expenses 6,564 7,571 Prepaid expenses & other current assets $ 10,203 $ 9,503 Other assets, net Goodwill $ 402 $ 402 Intangible assets, net 264 283 Non-current software hosting implementation costs 2,755 — Other assets, net 540 511 Other assets, net $ 3,961 $ 1,196 Software Hosting Implementation Costs Software hosting implementation costs includes costs of implementation activities of certain cloud computing arrangements in accordance with Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) . Amortization expense and accumulated amortization was $ 0.2 million for fiscal 2020. See Note 13 “Recent Accounting Pronouncements” for more information. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired. ASC Topic 350, Intangibles-Goodwill and Other , requires that goodwill be tested for impairment annually, or more often if an event or circumstance indicates that an impairment loss may have been incurred. The Company’s management uses its judgment in assessing whether goodwill may have become impaired between annual impairment tests. Indicators such as unexpected adverse business conditions, economic factors, competitive activities, loss of key personnel and acts by governments may signal that an asset has become impaired. The Company determined that the effects of COVID-19 may represent indicators of asset impairment, and as a result performed an interim qualitative assessment for the Company’s goodwill at May 3, 2020. The Company determined that it was more likely than not that the fair value was greater than its carrying value and no impairment loss had been incurred. There were no triggering events subsequent to the quarter ended May 3, 2020 and through the year ended January 31, 2021. Management performed its annual qualitative assessment of goodwill as of December 31, 2020 and 2019 and determined that it was more likely than not that the fair value of the Company was greater than its carrying amount; as such, no further evaluation of goodwill was deemed necessary. No impairment was recognized for the years ended January 31, 2021 or February 2, 2020. |
Intangible Assets and Other Assets | Intangible Assets and Other Assets Intangible assets and other assets include loan origination fees and trade names which are amortized over their estimated useful lives ranging from three years to fifteen years . Other assets also include security deposits required by certain of the Company’s lease agreements and prepaid expenses. Amortization expense was $ 0.2 million for fiscal 2020 and $ 0.1 million for fiscal 2019. Accumulated amortization was $ 0.7 million and $ 0.5 million as of January 31, 2021 and February 2, 2020, respectively. Scheduled future amortization of amortizable other assets are as follows as of January 31, 2021: Fiscal year (in thousands) 2021 $ 210 2022 193 2023 71 2024 18 2025 17 Thereafter 28 $ 537 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment during the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and the carrying value of the asset or group of assets. Such analyses necessarily involve judgment. The Company determined that the effects of COVID-19 may represent indicators of asset impairment, and as a result, performed an interim impairment assessment at May 3, 2020. In the first fiscal quarter of 2020, the Company performed undiscounted cash flow analyses on certain long-lived assets, including retail stores at the individual store level and determined that the estimated undiscounted future cash flows exceeded the net carrying values. There were no triggering events subsequent to the quarter ended May 3, 2020 and through the year ended January 31, 2021. Consequently, there were no long-lived asset impairment charges recorded for fiscal 2020. For fiscal 2019, management did not identify any events or changes in circumstances that indicated the potential impairment of long-lived assets. |
Store Pre-opening Costs | Store Pre-opening Costs Store pre-opening costs are expensed as incurred and are included in selling, general and administrative expenses. |
Stock-Based Compensation | Stock-Based Compensation In connection with the IPO, the Company adopted the 2015 Equity Incentive Plan of Duluth Holdings Inc. (“2015 Plan”), which provides compensation alternatives such as stock options, shares, restricted stock, restricted stock units, deferred stock and performance share units, using or based on the Company’s Class B common stock. The Company accounts for its stock-based compensation plan in accordance with ASC Topic 718, Stock Compensation , which requires the Company to measure all share-based payments at grant date fair value and recognize the cost over the requisite service period of the award. Restricted stock issued to board members generally vests over a period of one year . Restricted stock issued to key employees and executives typically vests over a period of three years to five years based on the terms for each individual award. The fair value of the restricted stock is determined based on the market value of the Company’s Class B common stock on the grant date. Restricted stock forfeitures are recognized as incurred. Total stock compensation expense associated with restricted stock recognized by the Company was $ 1.5 million and $ 0.5 million for fiscal 2020 and fiscal 2019, respectively, and is included in selling, general and administrative expenses on the Consolidated Statements of Operations. The following is a summary of the activity in the Company’s unvested restricted stock during the years ended January 31, 2021 and February 2, 2020: Weighted average grant date fair value Shares per share Outstanding at February 3, 2019 321,657 14.29 Granted 165,730 17.67 Vested ( 61,647 ) 18.90 Forfeited ( 233,646 ) 12.65 Outstanding at February 2, 2020 192,094 17.71 Granted 283,063 7.13 Vested ( 120,592 ) 16.21 Forfeited ( 16,326 ) 10.42 Outstanding at January 31, 2021 338,239 $ 9.74 At January 31, 2021, the Company had unrecognized compensation expense of $ 2.2 million related to the restricted stock awards, which is expected to be recognized over a weighted average period of 2.4 years. |
Treasury Stock | Treasury Stock Treasury stock consists of shares withheld in lieu of tax payments when restricted stock vests using the treasury cost method and is classified in the Consolidated Balance Sheets as a reduction to shareholders’ equity. |
Taxes Collected from Customers | Taxes Collected from Customers The Company presents all non-income government-assessed taxes (sales, use and value-added taxes) collected from its customers and remitted to governmental agencies on a net basis (excluded from revenue) in its consolidated financial statements. |
Other Comprehensive Income | Other Comprehensive Income Other comprehensive income or loss represents the change in equity from non-shareholder or non-member transactions, which is not included in the statements of earnings but is reported as a separate component of shareholders’ equity. For fiscal 2020 and fiscal 2019, other comprehensive income consists of changes in unrealized gains and losses on available-for-sale securities, net of taxes. |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) , defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., an exit price). The exit price is based on the amount that the holder of the asset or liability would receive or need to pay in an actual transaction (or in a hypothetical transaction if an actual transaction does not exist) at the measurement date. ASC 820 describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable, as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices 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 assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of the Company’s available-for-sale security was valued based on a discounted cash flow method (Level 3), which incorporates the U.S. Treasury yield curve, credit information and an estimate of future cash flows. During fiscal 2020, certain changes in the inputs did impact the fair value of the available-for-sale security. The calculated fair value is based on estimates that are subjective in nature and involve uncertainties and matters of significant judgement and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The amortized cost and fair value of the Company’s available-for-sale security and the corresponding amount of gross unrealized gains and losses recognized in accumulated other comprehensive income are as follows. January 31, 2021 Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) Level 3 security: Corporate trust $ 6,047 $ 64 $ $ 6,111 February 2, 2020 Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) Level 3 security: Corporate trust $ 6,178 $ 254 $ $ 6,432 The Company does not intend to sell the available-for-sale-security in the near term and does not believe that it will be required to sell the security. The Company reviews its security on a quarterly basis to monitor its exposure to other-than-temporary impairment. No other-than-temporary impairment was recorded in the Consolidated Statements of Operations in fiscal 2020 or fiscal 2019. The following table presents the future receipts related to the Company’s available-for-sale security by contractual maturity as of January 31, 2021. Amortized Estimated Cost Fair Value (in thousands) Within one year $ 147 $ 150 After one year through five years 1,004 1,022 After five years through ten years 1,563 1,581 After ten years 3,333 3,358 Total $ 6,047 $ 6,111 The carrying values and fair values of other financial instruments in the Consolidated Balance Sheets are as follows: January 31, 2021 February 2, 2020 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value TRI Long-term debt, including short-term portion $ 27,852 $ 28,697 $ 28,335 $ 30,238 The above long-term debt, including short-term portion is attributable to the consolidation of TRI in accordance with ASC Topic 810, Consolidation . The fair value was also based on a discounted cash flow method (Level 3) based on credit information and an estimate of future cash flows. As of January 31, 2021, and February 2, 2020, the carrying values of the long-term delayed draw term loan and long-term line of credit both approximated its fair value. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2019 financial statements in order to conform to the 2020 presentation. There were no changes to previously reported shareholders' equity or net income as a result of the reclassifications. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash and Restricted Cash | January 31, 2021 February 2, 2020 (in thousands) Cash and cash equivalents $ 47,221 $ 2,189 Restricted Cash - 51 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 47,221 $ 2,240 |
Schedule of Property and Equipment | January 31, 2021 February 2, 2020 (in thousands) Land and land improvements $ 4,486 $ 4,486 Leasehold improvements 47,451 42,784 Buildings 35,344 35,905 Vehicles 161 161 Warehouse equipment 14,685 14,379 Office equipment and furniture 52,614 49,756 Computer equipment 9,861 8,135 Software 34,003 31,500 198,605 187,106 Accumulated depreciation and amortization ( 75,958 ) ( 53,255 ) 122,647 133,851 Construction in progress 1,590 3,220 Property and equipment, net $ 124,237 $ 137,071 |
Property and Equipment Depreciable Lives by Major Classification | Years Land improvements 15 - 40 Leasehold improvements 3 - 15 Buildings 39 Vehicles 5 - 10 Warehouse equipment 5 - 10 Office equipment and furniture 5 - 10 Computer equipment 3 - 5 Software 3 - 5 |
Schedule of Prepaid Expenses and Other Assets | January 31, 2021 February 2, 2020 (in thousands) Prepaid expenses & other current assets Pending returns inventory, net $ 2,490 $ 1,932 Current software hosting implementation costs, net 1,149 — Other prepaid expenses 6,564 7,571 Prepaid expenses & other current assets $ 10,203 $ 9,503 Other assets, net Goodwill $ 402 $ 402 Intangible assets, net 264 283 Non-current software hosting implementation costs 2,755 — Other assets, net 540 511 Other assets, net $ 3,961 $ 1,196 |
Scheduled Future Amortization of Amortizable Other Assets | Fiscal year (in thousands) 2021 $ 210 2022 193 2023 71 2024 18 2025 17 Thereafter 28 $ 537 |
Summary of Activity in Unvested Restricted Stock | Weighted average grant date fair value Shares per share Outstanding at February 3, 2019 321,657 14.29 Granted 165,730 17.67 Vested ( 61,647 ) 18.90 Forfeited ( 233,646 ) 12.65 Outstanding at February 2, 2020 192,094 17.71 Granted 283,063 7.13 Vested ( 120,592 ) 16.21 Forfeited ( 16,326 ) 10.42 Outstanding at January 31, 2021 338,239 $ 9.74 |
Amortized Cost, Fair Value, and Corresponding Amount of Gross Unrealized Gains and Losses Recognized in AOCI of Available-for-Sale Security | January 31, 2021 Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) Level 3 security: Corporate trust $ 6,047 $ 64 $ $ 6,111 February 2, 2020 Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) Level 3 security: Corporate trust $ 6,178 $ 254 $ $ 6,432 |
Future Principal Receipts Related to Available-For-Sale Security by Contractual Maturity | Amortized Estimated Cost Fair Value (in thousands) Within one year $ 147 $ 150 After one year through five years 1,004 1,022 After five years through ten years 1,563 1,581 After ten years 3,333 3,358 Total $ 6,047 $ 6,111 |
Carrying Values and Fair Values of Other Financial Instruments in Consolidated Balance Sheets | January 31, 2021 February 2, 2020 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value TRI Long-term debt, including short-term portion $ 27,852 $ 28,697 $ 28,335 $ 30,238 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Expense Components Leases Reflected Consolidated Statement of Operations | Consolidated Statement of Operations January 31, 2021 February 2, 2020 (in thousands) Finance lease Amortization of right-of-use assets Selling, general and administrative expenses $ 2,929 $ 1,362 Interest on lease liabilities Interest expense 1,858 1,230 Total finance lease expense $ 4,787 $ 2,592 Operating lease expense Selling, general and administrative expenses $ 16,141 $ 15,636 Amortization of build-to-suit leases capital contribution Selling, general and administrative expenses 1,309 1,129 Variable lease expense Selling, general and administrative expenses 9,453 7,347 Total lease expense $ 31,690 $ 26,704 |
Other Information Related to Leases | January 31, 2021 February 2, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,958 $ 891 Operating cash flows from finance leases $ 1,858 $ 1,230 Operating cash flows from operating leases $ 15,652 $ 13,621 Right-of-use assets obtained in exchange for lease liabilities: Finance leases $ 8,966 $ 41,566 Operating leases $ 11,642 $ 17,629 Weighted-average remaining lease term (in years): Finance leases 13 15 Operating leases 9 10 Weighted-average discount rate: Finance leases 4.4 % 4.5 % Operating leases 4.3 % 4.3 % |
Future Minimum Lease Payments Under Non-Cancellable Leases | Finance Operating Fiscal year Leases Leases (in thousands) 2021 $ 4,575 $ 15,721 2022 4,554 15,851 2023 4,582 16,033 2024 4,769 15,383 2025 5,133 14,593 Thereafter 37,522 63,427 Total future minimum lease payments $ 61,135 $ 141,008 Less - Discount 15,207 25,671 Lease liability $ 45,928 $ 115,337 |
Debt and Credit Agreement (Tabl
Debt and Credit Agreement (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Debt and Credit Agreement [Abstract] | |
Schedule of Debt | January 31, 2021 February 2, 2020 (in thousands) TRI Senior Secured Note $ 24,352 $ 24,835 TRI Note 3,500 3,500 $ 27,852 $ 28,335 Less: current maturities 623 557 TRI Long-term debt $ 27,229 $ 27,778 Duluth Line of credit $ — $ 19,332 Duluth Delayed draw term loan 48,250 20,000 $ 48,250 $ 39,332 Less: current maturities 2,500 1,000 Duluth long-term debt $ 45,750 $ 38,332 |
Future Principal Maturities of All TRI Debt And Credit Agreement | Fiscal year (in thousands) 2021 $ 3,123 2022 3,193 2023 44,018 2024 847 2025 931 Thereafter 25,292 $ 77,404 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | January 31, 2021 February 2, 2020 (in thousands) Salaries and benefits $ 8,826 $ 2,775 Deferred revenue 9,944 9,946 Freight 6,769 5,404 Product returns 5,304 3,508 Catalog costs 396 542 Unpaid purchases of property & equipment 503 971 Accrued advertising 981 633 Other 4,963 5,685 Total accrued expenses and other current liabilities $ 37,686 $ 29,464 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Schedule Assets and Liabilities of Variable Interest Entity | January 31, 2021 February 2, 2020 (in thousands) Cash $ 747 $ 279 Property and equipment, net 24,800 25,981 Total assets $ 25,547 $ 26,260 Other current liabilities $ 58 $ 91 Current maturities of TRI long-term debt 623 557 TRI long-term debt 27,229 27,778 Noncontrolling interest in VIE ( 2,363 ) ( 2,166 ) Total liabilities and shareholders' equity $ 25,547 $ 26,260 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings (Loss) Per Share | Fiscal Year Ended January 31, 2021 February 2, 2020 (in thousands, except per share data) Numerator - net income attributable to controlling interest $ 13,577 $ 18,921 Denominator - weighted average shares (Class A and Class B) Basic 32,447 32,309 Dilutive shares 133 62 Diluted 32,580 32,371 Earnings per share (Class A and Class B) Basic $ 0.42 $ 0.59 Diluted $ 0.42 $ 0.58 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Revenue [Abstract] | |
Sales Disaggregated Based Upon Sales Channel | January 31, 2021 February 2, 2020 (in thousands) Direct-to-consumer $ 460,839 $ 350,371 Stores 177,944 265,253 $ 638,783 $ 615,624 |
Contract Assets and Liabilities on Consolidated Balance Sheets | January 31, 2021 February 2, 2020 (in thousands) Contract assets $ 2,490 $ 1,932 Contract liabilities $ 9,788 $ 9,790 |
Reconciliation of Contract Liability Related to Gift Cards | January 31, 2021 February 2, 2020 (in thousands) Balance as of Beginning of Period $ 9,790 $ 8,508 Gift cards sold 17,098 17,523 Gift cards redeemed ( 14,766 ) ( 15,137 ) Gift card breakage ( 2,334 ) ( 1,047 ) Gift card escheat - ( 57 ) Balance as of End of Period $ 9,788 $ 9,790 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | Fiscal Year Ended January 31, 2021 February 2, 2020 (in thousands) Current: Federal $ 3,350 $ 4,727 State 1,283 1,308 4,633 6,035 Noncurrent: Federal $ 168 $ — State 91 — 259 — Deferred: Federal 353 ( 568 ) State ( 608 ) ( 38 ) ( 255 ) ( 606 ) Total income tax expense $ 4,637 $ 5,429 |
Reconciliation of Income Tax Expense to Amount Computed at Federal Statutory Rate | Fiscal Year Ended January 31, 2021 February 2, 2020 (in thousands) Federal taxes at statutory rate $ 3,824 21.0 % $ 5,114 21.0 % State and local income taxes, net of federal benefit 786 4.3 % 965 4.0 % Research and development tax credits ( 151 ) ( 0.8 ) % ( 487 ) ( 2.0 ) % Other 178 1.0 % ( 163 ) ( 0.7 ) % Total income tax expense $ 4,637 25.5 % $ 5,429 22.3 % |
Significant Components of Deferred Tax Assets and Liabilities | January 31, 2021 February 2, 2020 (in thousands) Deferred tax assets: Returns allowance $ 1,330 $ 912 Uniform capitalization 3,425 2,930 Deferred rent 205 — Accruals 1,841 388 Stock-based compensation 231 352 Advance payments 685 820 Unrecognized tax benefits 2 — Total deferred tax assets 7,719 5,402 Deferred tax liabilities: Property and equipment 13,202 10,346 Unrealized gain on investment 16 66 Inventory 223 27 Prepaid expenses 868 857 Goodwill and intangibles 66 66 Capital lease 1,454 2,358 Revenue recognition method adjustment 90 187 Total deferred tax liabilities 15,919 13,907 Net deferred tax liabilities $ 8,200 $ 8,505 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | January 31, 2021 February 2, 2020 (in thousands) Balance beginning of year $ — $ — Additions for tax positions in prior year 214 — Additions for tax positions in current year 45 — Balance at end of year $ 259 $ — |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | Fiscal 2020 First Quarter % of Net Sales Second Quarter % of Net Sales Third Quarter % of Net Sales Fourth Quarter % of Net Sales (in thousands, except earnings per share) Net sales $ 109,917 100.0 % $ 137,375 100.0 % $ 135,531 100.0 % $ 255,960 100.0 % Gross profit 52,332 47.6 % 72,472 52.8 % 71,037 52.4 % 135,685 53.0 % Operating (loss) income ( 18,974 ) ( 17.3 )% 9,792 7.1 % 2,848 2.1 % 30,549 11.9 % Net (loss) income attributable to controlling interest ( 15,135 ) ( 13.8 )% 5,941 4.3 % 940 0.7 % 21,831 8.5 % Basic (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.47 ) 0.18 0.03 0.67 Diluted (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.47 ) 0.18 0.03 0.67 Fiscal 2019 First Quarter % of Net Sales Second Quarter % of Net Sales Third Quarter % of Net Sales Fourth Quarter % of Net Sales (in thousands, except earnings per share) Net sales $ 114,244 100.0 % $ 121,963 100.0 % $ 119,768 100.0 % $ 259,649 100.0 % Gross profit 60,918 53.3 % 64,804 53.1 % 65,365 54.6 % 137,062 52.8 % Operating (loss) income ( 10,104 ) ( 8.8 )% 3,735 3.1 % 1,328 1.1 % 33,149 12.8 % Net (loss) income attributable to controlling interest ( 7,572 ) ( 6.6 )% 1,936 1.6 % 182 0.2 % 24,375 9.4 % Basic (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.23 ) 0.06 0.01 0.75 Diluted (loss) earnings per share attributable to controlling interest (Class A and Class B) ( 0.23 ) 0.06 0.01 0.75 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Narrative) (Details) | Feb. 03, 2020segment | Jan. 31, 2021itemstore | Feb. 02, 2020segment | Feb. 03, 2019segment |
Number of operating segments | segment | 2 | 2 | ||
Number of reportable segments | segment | 1 | |||
Number of retail stores | store | 62 | |||
Number of outlet stores | store | 3 | |||
Number of classes of authorized common stock | 2 | |||
Common stock voting and conversion rights | Each share of Class A common stock is entitled to ten votes per share and is convertible at any time into one share of Class B common stock. Each share of Class B common stock is entitled to one vote per share. | |||
Class A common stock [Member] | ||||
Number of votes per share | 10 | |||
Class B common stock [Member] | ||||
Number of votes per share | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Catalog and advertising expenses | $ 72,400,000 | $ 93,900,000 |
Shipping and processing expenses | 307,257,000 | 287,475,000 |
Depreciation expense | 24,200,000 | 19,200,000 |
Inventory reserve for excess and obsolete items | 1,600,000 | 1,800,000 |
Long-lived asset impairment charges | 0 | |
Amortization expense of other assets | 200,000 | 100,000 |
Accumulated amortization of other assets | 700,000 | 500,000 |
Other-than-temporary impairment | 0 | 0 |
Accounting Standards Update 2018-15 [Member] | ||
Software hosting implementation costs amortization expense | 200,000 | |
Shipping and Handling [Member] | ||
Shipping and processing expenses | 46,900,000 | 31,300,000 |
Direct [Member] | ||
Goodwill impairment loss | $ 0 | $ 0 |
Inventory Expenditures [Member] | Supplier One [Member] | ||
Concentration risk, percentage | 60.00% | 54.00% |
Inventory Expenditures [Member] | Supplier Two [Member] | ||
Concentration risk, percentage | 10.00% | 12.00% |
Minimum [Member] | ||
Period for amounts receivable from credit card issuers converted to cash | 2 days | |
Other assets amortization estimated useful life | 3 years | |
Maximum [Member] | ||
Period for amounts receivable from credit card issuers converted to cash | 4 days | |
Other assets amortization estimated useful life | 15 years | |
Unvested Restricted Stock [Member] | ||
Stock compensation expense | $ 1,500,000 | $ 500,000 |
Unrecognized compensation expense | $ 2,200,000 | |
Unrecognized compensation expense, weighted average recognition period | 2 years 4 months 24 days | |
Unvested Restricted Stock [Member] | Board Members [Member] | ||
Stock-based compensation, vesting period | 1 year | |
Unvested Restricted Stock [Member] | Key Employees And Executives [Member] | Minimum [Member] | ||
Stock-based compensation, vesting period | 3 years | |
Unvested Restricted Stock [Member] | Key Employees And Executives [Member] | Maximum [Member] | ||
Stock-based compensation, vesting period | 5 years |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule of Reconciliation of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 |
Cash and Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 47,221 | $ 2,189 | |
Restricted cash | 51 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 47,221 | $ 2,240 | $ 3,085 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 198,605 | $ 187,106 |
Accumulated depreciation and amortization | (75,958) | (53,255) |
Property and equipment net excluding construction in progress | 122,647 | 133,851 |
Construction in progress | 1,590 | 3,220 |
Property and equipment, net | 124,237 | 137,071 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 4,486 | 4,486 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 47,451 | 42,784 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 35,344 | 35,905 |
Property and equipment estimated useful Life | 39 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 161 | 161 |
Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 14,685 | 14,379 |
Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 52,614 | 49,756 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 9,861 | 8,135 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 34,003 | $ 31,500 |
Minimum [Member] | Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 15 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 3 years | |
Minimum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 5 years | |
Minimum [Member] | Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 5 years | |
Minimum [Member] | Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 5 years | |
Minimum [Member] | Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 3 years | |
Minimum [Member] | Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 3 years | |
Maximum [Member] | Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 40 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 15 years | |
Maximum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 10 years | |
Maximum [Member] | Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 10 years | |
Maximum [Member] | Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 10 years | |
Maximum [Member] | Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 5 years | |
Maximum [Member] | Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful Life | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pending returns inventory, net | $ 2,490 | $ 1,932 |
Current software hosting implementation costs, net | 1,149 | |
Other prepaid expenses | 6,564 | 7,571 |
Prepaid expenses & other current assets | 10,203 | 9,503 |
Goodwill | 402 | 402 |
Intangible assets, net | 264 | 283 |
Non-current software hosting implementation costs | 2,755 | |
Other assets, net | 540 | 511 |
Other assets, net | $ 3,961 | $ 1,196 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Scheduled Future Amortization of Amortizable Other Assets) (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2021 | $ 210 |
2022 | 193 |
2023 | 71 |
2024 | 18 |
2025 | 17 |
Thereafter | 28 |
Other Assets | $ 537 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Summary of Activity in Unvested Restricted Stock) (Details) - Unvested Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance, shares | 192,094 | 321,657 |
Granted | 283,063 | 165,730 |
Vested | (120,592) | (61,647) |
Forfeited | (16,326) | (233,646) |
Ending balance, shares | 338,239 | 192,094 |
Weighted average fair value per share, beginning balance | $ 17.71 | $ 14.29 |
Weighted average fair value per share, Granted | 7.13 | 17.67 |
Weighted average grant date fair value, Vested | 16.21 | 18.90 |
Weighted average grant date fair value per share, Forfeited | 10.42 | 12.65 |
Weighted average fair value per share, ending balance | $ 9.74 | $ 17.71 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Amortized Cost, Fair Value, and Corresponding Amount of Gross Unrealized Gains and Losses Recognized in AOCI of Available-for-Sale Security) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 6,111 | $ 6,432 |
Fair Value, Inputs, Level 3 [Member] | Corporate Trust [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 6,047 | 6,178 |
Gross Unrealized Gains | 64 | 254 |
Gross Unrealized Losses | ||
Estimated Fair Value | $ 6,111 | $ 6,432 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Future Principal Receipts Related to Available-For-Sale Security by Contractual Maturity) (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Available For Sale Securities [Abstract] | |
Amortized Cost, Within one year | $ 147 |
Amortized Cost, After one year through five years | 1,004 |
Amortized Cost, After five years through ten years | 1,563 |
Amortized Cost, After ten years | 3,333 |
Amortized Cost, Total | 6,047 |
Estimated Fair Value, Within one year | 150 |
Estimated Fair Value, After one year through five years | 1,022 |
Estimated Fair Value, After five years through ten years | 1,581 |
Estimated Fair Value, After ten years | 3,358 |
Estimated Fair Value, Total | $ 6,111 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Carrying Values and Fair Values of Other Financial Instruments in Consolidated Balance Sheets) (Details) - TRI Debt [Member] - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including short-term portion, Carrying Amount | $ 27,852 | $ 28,335 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including short-term portion, Fair Value | $ 28,697 | $ 30,238 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Operating lease right-of-use assets | $ 117,490,000 | $ 120,431,000 |
Operating lease liability | 115,337,000 | |
Rent expense under non-cancellable operating leases | 17,100,000 | $ 16,200,000 |
Accounting Standards Update 2016-02 (Topic 842) [Member] | ||
Operating lease right-of-use assets | 0 | |
Operating lease liability | 0 | |
Accounting Standards Update 2016-02 (Topic 842) [Member] | Covid-19 [Member] | ||
Deferred rent | $ 800,000 | |
Minimum [Member] | ||
Store leases initial lease term | 5 years | |
Maximum [Member] | ||
Store leases initial lease term | 15 years |
Leases (Expense Components Leas
Leases (Expense Components Leases Reflected Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Lease, Cost [Abstract] | ||
Finance lease: Amortization of right-of-use assets | $ 2,929 | $ 1,362 |
Finance lease: Interest on lease liabilities | 1,858 | 1,230 |
Total finance lease expense | 4,787 | 2,592 |
Operating lease expense | 16,141 | 15,636 |
Amortization of build-to-suit leases capital contribution | 1,309 | 1,129 |
Variable lease expense | 9,453 | 7,347 |
Total lease expense | $ 31,690 | $ 26,704 |
Leases (Other Information Relat
Leases (Other Information Related To Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | $ 1,958 | $ 891 |
Operating cash flows from finance leases | 1,858 | 1,230 |
Operating cash flows from operating leases | 15,652 | 13,621 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Finance leases | 8,966 | 41,566 |
Operating leases | $ 11,642 | $ 17,629 |
Weighted-average remaining lease term (in years): | ||
Finance leases | 13 years | 15 years |
Operating leases | 9 years | 10 years |
Weighted-average discount rate: | ||
Finance leases | 4.40% | 4.50% |
Operating leases | 4.30% | 4.30% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancellable Leases) (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Finance | |
2021 | $ 4,575 |
2022 | 4,554 |
2023 | 4,582 |
2024 | 4,769 |
2025 | 5,133 |
Thereafter | 37,522 |
Total future minimum lease payments | 61,135 |
Less – Discount | 15,207 |
Lease liability | 45,928 |
Operating | |
2021 | 15,721 |
2022 | 15,851 |
2023 | 16,033 |
2024 | 15,383 |
2025 | 14,593 |
Thereafter | 63,427 |
Total future minimum lease payments | 141,008 |
Less – Discount | 25,671 |
Lease liability | $ 115,337 |
Debt and Credit Agreement (Narr
Debt and Credit Agreement (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Apr. 30, 2020 | May 17, 2018 | |
TRI Senior Secured Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt, original balance | $ 26,700,000 | ||
Debt instrument, maturity date | Oct. 15, 2038 | ||
Debt instrument stated percentage interest rate | 4.95% | ||
TRI Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt, original balance | $ 3,500,000 | ||
TRI note maturity date | 2038-11 | ||
Debt instrument stated percentage interest rate | 3.05% | ||
Amended Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 150,500,000 | ||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, effective rate | 3.50% | ||
Amended Credit Agreement [Member] | Incremental Delayed Draw Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 20,500,000 | ||
Line of credit maturity date | Apr. 29, 2021 | ||
Amended Credit Agreement [Member] | Floor Rate [Member] | Delayed Draw Term Loan ("DDTL") [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 1.00% | ||
Amended Credit Agreement [Member] | Floor Rate [Member] | Incremental Delayed Draw Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 1.00% | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 130,000,000 | ||
Debt instrument description of variable interest rate | On April 30, 2020, the Credit Agreement was amended to include an incremental DDTL of $20.5 million (the “Incremental DDTL”) that is available to draw upon before March 31, 2021, and matures on April 29, 2021, for a total credit facility of $150.5 million. As of and for the fiscal year ended January 31, 2021, no amount of the Incremental DDTL was funded. The loan covenants were also amended to allow for greater flexibility during the Company’s peak borrowing periods in fiscal 2020. The interest rate applicable to the Revolver or DDTL will be a fixed rate for a one-, two-, three- or six-month interest period equal to LIBOR (with a 1% floor) for such interest period plus a margin of 225 to 300 basis points, based upon the Company’s rent adjusted leverage ratio (effective rate of 3.5% for the Revolver and the DDTL at January 31, 2021). The interest rate applicable to the Incremental DDTL will also be a fixed rate over the aforementioned interest periods equal to LIBOR (with a 1% floor) for such interest period plus a margin of 275 to 350 basis points. | ||
Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | 80,000,000 | ||
Line of credit maturity date | May 17, 2023 | ||
Credit Agreement [Member] | Delayed Draw Term Loan ("DDTL") [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 50,000,000 | ||
Line of credit maturity date | May 17, 2023 | ||
Minimum [Member] | Amended Credit Agreement [Member] | LIBOR [Member] | Delayed Draw Term Loan ("DDTL") [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 2.25% | ||
Minimum [Member] | Amended Credit Agreement [Member] | LIBOR [Member] | Incremental Delayed Draw Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 2.75% | ||
Maximum [Member] | Amended Credit Agreement [Member] | LIBOR [Member] | Delayed Draw Term Loan ("DDTL") [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 3.00% | ||
Maximum [Member] | Amended Credit Agreement [Member] | LIBOR [Member] | Incremental Delayed Draw Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 3.50% |
Debt and Credit Agreement (Sche
Debt and Credit Agreement (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
TRI Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 27,852 | $ 28,335 |
Less: current maturities | 623 | 557 |
Long-term debt | 27,229 | 27,778 |
Duluth Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Less: current maturities | 2,500 | 1,000 |
Delayed draw term loan | 45,750 | 38,332 |
TRI Senior Secured Note [Member] | TRI Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 24,352 | 24,835 |
TRI Note [Member] | TRI Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3,500 | 3,500 |
Duluth Line of Credit [Member] | Duluth Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Delayed draw term loan | 19,332 | |
Delayed Draw Term Loan ("DDTL") [Member] | Duluth Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Delayed draw term loan | 48,250 | 20,000 |
Capital Lease Obligations [Member] | Duluth Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Delayed draw term loan | $ 48,250 | $ 39,332 |
Debt and Credit Agreement (Futu
Debt and Credit Agreement (Future Principal Maturities of All TRI Debt And Credit Agreement) (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
TRI Debt [Member] | |
Debt financing fees | $ 1,300 |
TRI Debt, Line Of Credit And Delayed Draw Term Loan [Member] | |
2021 | 3,123 |
2022 | 3,193 |
2023 | 44,018 |
2024 | 847 |
2025 | 931 |
Thereafter | 25,292 |
Long-term Debt | $ 77,404 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Salaries and benefits | $ 8,826 | $ 2,775 |
Deferred revenue | 9,944 | 9,946 |
Freight | 6,769 | 5,404 |
Product returns | 5,304 | 3,508 |
Catalog costs | 396 | 542 |
Unpaid purchases of property & equipment | 503 | 971 |
Accrued advertising | 981 | 633 |
Other | 4,963 | 5,685 |
Total accrued expenses and other current liabilities | $ 37,686 | $ 29,464 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Wisconsin [Member] | TRI Holdings, LLC [Member] | |
Variable Interest Entities [Line Items] | |
Amount invested in a trust | $ 6.3 |
Variable Interest Entities (Sch
Variable Interest Entities (Schedule Assets and Liabilities of Variable Interest Entity) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Variable Interest Entity [Line Items] | ||
Property and equipment, net | $ 124,237 | $ 137,071 |
Total assets | 515,577 | 474,050 |
Noncontrolling interest in VIE | (2,363) | (2,166) |
Total liabilities and shareholders' equity | 515,577 | 474,050 |
Wisconsin [Member] | TRI Holdings, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash | 747 | 279 |
Property and equipment, net | 24,800 | 25,981 |
Total assets | 25,547 | 26,260 |
Other current liabilities | 58 | 91 |
Current maturities of TRI long-term debt | 623 | 557 |
TRI long-term debt | 27,229 | 27,778 |
Noncontrolling interest in VIE | (2,363) | (2,166) |
Total liabilities and shareholders' equity | $ 25,547 | $ 26,260 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of Numerator and Denominator of Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2021 | Nov. 01, 2020 | Aug. 02, 2020 | May 03, 2020 | Feb. 02, 2020 | Nov. 03, 2019 | Aug. 04, 2019 | May 05, 2019 | Jan. 31, 2021 | Feb. 02, 2020 | |
Earnings Per Share [Abstract] | ||||||||||
Net income attributable to controlling interest | $ 21,831 | $ 940 | $ 5,941 | $ (15,135) | $ 24,375 | $ 182 | $ 1,936 | $ (7,572) | $ 13,577 | $ 18,921 |
Basic weighted average shares | 32,447 | 32,309 | ||||||||
Dilutive shares weighted average shares | 133 | 62 | ||||||||
Diluted weighted average shares | 32,580 | 32,371 | ||||||||
Earnings per share (Class A and Class B), Basic | $ 0.67 | $ 0.03 | $ 0.18 | $ (0.47) | $ 0.75 | $ 0.01 | $ 0.06 | $ (0.23) | $ 0.42 | $ 0.59 |
Earnings per share (Class A and Class B), Diluted | $ 0.67 | $ 0.03 | $ 0.18 | $ (0.47) | $ 0.75 | $ 0.01 | $ 0.06 | $ (0.23) | $ 0.42 | $ 0.58 |
Revenue (Sales Disaggregated Ba
Revenue (Sales Disaggregated Based Upon Sales Channel) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 638,783 | $ 615,624 |
Direct-to-Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 460,839 | 350,371 |
Stores [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 177,944 | $ 265,253 |
Revenue (Contract Assets and Li
Revenue (Contract Assets and Liabilities on Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 |
Revenue [Abstract] | |||
Contract assets | $ 2,490 | $ 1,932 | |
Contract liabilities | $ 9,788 | $ 9,790 | $ 8,508 |
Revenue (Reconciliation of Cont
Revenue (Reconciliation of Contract Liability Related to Gift Cards) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Balance as of Beginning of Period | $ 9,790 | $ 8,508 |
Balance as of End of Period | 9,788 | 9,790 |
Gift Cards Sold [Member] | ||
Increase (decrease) in gift cards | 17,098 | 17,523 |
Gift Cards Redeemed [Member] | ||
Increase (decrease) in gift cards | (14,766) | (15,137) |
Gift Card Breakage [Member] | ||
Increase (decrease) in gift cards | $ (2,334) | (1,047) |
Gift Card Escheat [Member] | ||
Increase (decrease) in gift cards | $ (57) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Unrecognized tax benefits that would impact effective tax rate | $ 300,000 | |
Tax expense for interest or penalties | $ 0 | |
Federal [Member] | Tax Year 2016 [Member] | ||
Tax years open for tax examination | 2017 | |
State [Member] | Tax Year 2015 [Member] | ||
Tax years open for tax examination | 2016 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Current: | ||
Federal | $ 3,350 | $ 4,727 |
State | 1,283 | 1,308 |
Total current income tax expense | 4,633 | 6,035 |
Noncurrent: | ||
Federal | 168 | |
State | 91 | |
Total noncurrent income tax expense | 259 | |
Deferred: | ||
Federal | 353 | (568) |
State | (608) | (38) |
Total deferred income tax expense | (255) | (606) |
Total income tax expense | $ 4,637 | $ 5,429 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense to Amount Computed at Federal Statutory Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Income Taxes [Abstract] | ||
Federal taxes at statutory rate | $ 3,824 | $ 5,114 |
State and local income taxes, net of federal benefit | 786 | 965 |
Research and development tax credits | (151) | (487) |
Other | 178 | (163) |
Total income tax expense | $ 4,637 | $ 5,429 |
Federal taxes at statutory rate | 21.00% | 21.00% |
State and local income taxes, net of federal benefit | 4.30% | 4.00% |
Research and development tax credits | (0.80%) | (2.00%) |
Other | 1.00% | (0.70%) |
Total income tax expense | 25.50% | 22.30% |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Deferred tax assets: | ||
Returns allowance | $ 1,330 | $ 912 |
Uniform capitalization | 3,425 | 2,930 |
Deferred rent | 205 | |
Accruals | 1,841 | 388 |
Stock-based compensation | 231 | 352 |
Advance payments | 685 | 820 |
Unrecognized tax benefits | 2 | |
Total deferred tax assets | 7,719 | 5,402 |
Deferred tax liabilities: | ||
Property and equipment | 13,202 | 10,346 |
Unrealized gain on investment | 16 | 66 |
Inventory | 223 | 27 |
Prepaid expenses | 868 | 857 |
Goodwill and intangibles | 66 | 66 |
Capital lease | 1,454 | 2,358 |
Revenue recognition method adjustment | 90 | 187 |
Total deferred tax liabilities | 15,919 | 13,907 |
Net deferred tax liabilities | $ 8,200 | $ 8,505 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||
Balance beginning of year | ||
Additions for tax positions in prior year | 214 | |
Additions for tax positions in current year | 45 | |
Balance at end of year | $ 259 |
Retirement Plan (Narrative) (De
Retirement Plan (Narrative) (Details) - 401(k) profit sharing plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Feb. 02, 2020 | |
Profit sharing contributions percent on eligible wages | 0.00% | ||
Total expenses under the retirement plan | $ 1.6 | $ 1.5 | |
Contribution on 3% of Participant Compensation [Member] | |||
Quarterly employer matching contribution percent | 100.00% | ||
Contribution on 2% of Participant Compensation [Member] | |||
Quarterly employer matching contribution percent | 50.00% | ||
Employer Matching Contribution 100% [Member] | |||
Participant percentage contribution to the plan | 3.00% | ||
Employer Matching Contribution 50% [Member] | |||
Participant percentage contribution to the plan | 2.00% |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Schedule of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2021 | Nov. 01, 2020 | Aug. 02, 2020 | May 03, 2020 | Feb. 02, 2020 | Nov. 03, 2019 | Aug. 04, 2019 | May 05, 2019 | Jan. 31, 2021 | Feb. 02, 2020 | |
Quarterly Financial Data [Abstract] | ||||||||||
Net sales | $ 255,960 | $ 135,531 | $ 137,375 | $ 109,917 | $ 259,649 | $ 119,768 | $ 121,963 | $ 114,244 | $ 638,783 | $ 615,624 |
% of Net Sales, Net sales | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||
Gross profit | $ 135,685 | $ 71,037 | $ 72,472 | $ 52,332 | $ 137,062 | $ 65,365 | $ 64,804 | $ 60,918 | 331,526 | 328,149 |
% of Net Sales, Gross profit | 53.00% | 52.40% | 52.80% | 47.60% | 52.80% | 54.60% | 53.10% | 53.30% | ||
Operating income (loss) | $ 30,549 | $ 2,848 | $ 9,792 | $ (18,974) | $ 33,149 | $ 1,328 | $ 3,735 | $ (10,104) | 24,215 | 28,108 |
% of Net Sales, Operating income (loss) | 11.90% | 2.10% | 7.10% | (17.30%) | 12.80% | 1.10% | 3.10% | (8.80%) | ||
Net income (loss) attributable to controlling interest | $ 21,831 | $ 940 | $ 5,941 | $ (15,135) | $ 24,375 | $ 182 | $ 1,936 | $ (7,572) | $ 13,577 | $ 18,921 |
% of Net Sales, Net income (loss) attributable to controlling interest | 8.50% | 0.70% | 4.30% | (13.80%) | 9.40% | 0.20% | 1.60% | (6.60%) | ||
Basic (loss) earnings per share attributable to controlling interest (Class A and Class B) | $ 0.67 | $ 0.03 | $ 0.18 | $ (0.47) | $ 0.75 | $ 0.01 | $ 0.06 | $ (0.23) | $ 0.42 | $ 0.59 |
Diluted (loss) earnings per share attributable to controlling interest (Class A and Class B) | $ 0.67 | $ 0.03 | $ 0.18 | $ (0.47) | $ 0.75 | $ 0.01 | $ 0.06 | $ (0.23) | $ 0.42 | $ 0.58 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - Accounting Standards Update 2018-15 [Member] $ in Millions | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Capitalized costs associated with implementation activities | $ 3.9 |
Amortization costs related to implementation activities | $ 0.2 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Inventory Reserve [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning Balance | $ 1,826 | $ 2,420 |
Charged to Cost and Expenses | ||
Charges to Other Accounts | ||
Deductions | (226) | (594) |
Ending Balance | 1,600 | 1,826 |
Product Returns Reserve [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning Balance | 3,508 | 2,088 |
Charged to Cost and Expenses | 1,796 | 1,420 |
Charges to Other Accounts | ||
Deductions | ||
Ending Balance | $ 5,304 | $ 3,508 |