Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2024 | Jun. 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 04, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | JILL | |
Entity Registrant Name | J.Jill, Inc. | |
Entity Central Index Key | 0001687932 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38026 | |
Entity Tax Identification Number | 45-1459825 | |
Entity Address, Address Line One | 4 Batterymarch Park | |
Entity Address, City or Town | Quincy | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02169 | |
City Area Code | 617 | |
Local Phone Number | 376-4300 | |
Entity Common Stock, Shares Outstanding | 10,747,847 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 77,117 | $ 62,172 |
Accounts receivable | 10,914 | 5,042 |
Inventories, net | 53,145 | 53,259 |
Prepaid expenses and other current assets | 17,676 | 17,656 |
Total current assets | 158,852 | 138,129 |
Property and equipment, net | 52,083 | 54,118 |
Intangible assets, net | 64,638 | 66,246 |
Goodwill | 59,697 | 59,697 |
Operating lease assets, net | 106,107 | 108,203 |
Other assets | 2,525 | 1,787 |
Total assets | 443,902 | 428,180 |
Current liabilities: | ||
Accounts payable | 41,687 | 41,112 |
Accrued expenses and other current liabilities | 46,834 | 42,283 |
Current portion of long-term debt | 35,353 | 35,353 |
Current portion of operating lease liabilities | 34,701 | 36,204 |
Total current liabilities | 158,575 | 154,952 |
Long-term debt, net of discount and current portion | 119,079 | 120,595 |
Deferred income taxes | 11,107 | 10,967 |
Operating lease liabilities, net of current portion | 100,684 | 103,070 |
Other liabilities | 1,345 | 1,378 |
Total liabilities | 390,790 | 390,962 |
Commitments and contingencies (see Note 11) | ||
Shareholders' Equity | ||
Common stock, par value $0.01 per share; 50,000,000 shares authorized; 10,747,847 and 10,614,454 shares issued and outstanding at May 4, 2024 and February 3, 2024, respectively | 107 | 107 |
Additional paid-in capital | 212,434 | 213,236 |
Accumulated deficit | (159,429) | (176,125) |
Total shareholders' equity | 53,112 | 37,218 |
Total liabilities and shareholders' equity | $ 443,902 | $ 428,180 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 04, 2024 | Feb. 03, 2024 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 10,747,847 | 10,614,454 |
Common stock, shares outstanding | 10,747,847 | 10,614,454 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Net sales | $ 161,513 | $ 150,246 |
Costs of goods sold (exclusive of depreciation and amortization) | 43,776 | 41,880 |
Gross profit | 117,737 | 108,366 |
Selling, general and administrative expenses | 89,112 | 82,972 |
Impairment of long-lived assets | 253 | 0 |
Operating income | 28,372 | 25,394 |
Loss on debt refinancing | 12,702 | |
Interest expense | 6,436 | 5,627 |
Interest income | 988 | 570 |
Income before provision for income taxes | 22,924 | 6,561 |
Income tax provision | 6,228 | 1,965 |
Net income and total comprehensive income | $ 16,696 | $ 4,596 |
Net income per common share: | ||
Basic | $ 1.17 | $ 0.33 |
Diluted | $ 1.16 | $ 0.32 |
Weighted average common shares: | ||
Basic | 14,256,928 | 14,063,409 |
Diluted | 14,395,197 | 14,322,606 |
Related Party | ||
Interest expense | $ 1,074 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Jan. 28, 2023 | $ (219) | $ 102 | $ 212,005 | $ (212,326) |
Beginning balance, shares at Jan. 28, 2023 | 10,165,361 | |||
Vesting of restricted stock units | $ 2 | (2) | ||
Vesting of restricted stock units, shares | 227,237 | |||
Surrender of shares to pay withholding taxes | (1,930) | (1,930) | ||
Surrender of shares to pay withholding taxes, shares | (66,423) | |||
Equity-based compensation | 878 | $ 3 | 878 | |
Exercise of warrants | (3) | |||
Exercise of warrants, shares | 254,627 | |||
Net Income (Loss) | 4,596 | $ 4,596 | ||
Ending balance at Apr. 29, 2023 | 3,325 | $ 107 | 210,948 | |
Ending balance, shares at Apr. 29, 2023 | 10,580,802 | (207,730) | ||
Beginning balance at Feb. 03, 2024 | $ 37,218 | $ 107 | 213,236 | $ (176,125) |
Beginning balance, shares at Feb. 03, 2024 | 10,614,454 | 10,614,454 | ||
Vesting of restricted stock units | $ 2 | (2) | ||
Vesting of restricted stock units, shares | 201,827 | |||
Surrender of shares to pay withholding taxes | $ (2,056) | $ (2) | (2,054) | |
Surrender of shares to pay withholding taxes, shares | (68,434) | |||
Equity-based compensation | 1,254 | 1,254 | ||
Net Income (Loss) | 16,696 | 16,696 | ||
Ending balance at May. 04, 2024 | $ 53,112 | $ 107 | $ 212,434 | $ (159,429) |
Ending balance, shares at May. 04, 2024 | 10,747,847 | 10,747,847 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Net income | $ 16,696 | $ 4,596 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 5,825 | 5,568 |
Impairment of long-lived assets | 253 | 0 |
Adjustment for exited retail stores | (509) | |
Loss on disposal of fixed assets | 6 | 20 |
Loss on debt refinancing | 12,702 | |
Noncash interest expense, net | 681 | 1,562 |
Equity-based compensation | 1,254 | 878 |
Deferred rent incentives | (32) | (32) |
Deferred income taxes | 140 | (103) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,872) | (1,114) |
Inventories, net | 114 | (3,203) |
Prepaid expenses and other current assets | (20) | (138) |
Accounts payable | 438 | 1,502 |
Accrued expenses and other current liabilities | 4,560 | (11,276) |
Operating lease assets and liabilities | (1,284) | (1,553) |
Other noncurrent assets and liabilities | (751) | (1,550) |
Net cash provided by operating activities | 21,499 | 7,859 |
Investing activities: | ||
Purchases of property and equipment | (1,732) | (1,504) |
Capitalized software | (580) | (1,421) |
Net cash used in investing activities | (2,312) | (2,925) |
Financing activities: | ||
Proceeds from issuance of Term Loan | 164,050 | |
Third-party debt financing costs | (3,686) | |
Surrender of shares to pay withholding taxes | (2,054) | (1,930) |
Net cash used in financing activities | (4,242) | (64,096) |
Net change in cash and cash equivalents | 14,945 | (59,162) |
Cash and cash equivalents: | ||
Beginning of Period | 62,172 | 87,053 |
End of Period | 77,117 | 27,891 |
Term Loan [Member] | ||
Financing activities: | ||
Principal repayments | $ (2,188) | |
Priming Term Loan [Member] | ||
Financing activities: | ||
Principal repayments | (201,349) | |
Subordinated Term Loan-Related Party [Member] | ||
Financing activities: | ||
Principal repayments | $ (21,181) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 16,696 | $ 4,596 |
Insider Trading Arrangements
Insider Trading Arrangements - shares | Apr. 08, 2024 | Apr. 02, 2024 |
Claire Spofford [Member] | ||
Trading Arrangements, by Individual | ||
Name | Claire Spofford | |
Title | Chief Executive Officer and President and Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | April 8, 2024 | |
Aggregate Available | 46,981 | |
Mark Webb [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mark Webb | |
Title | Executive Vice President, Chief Financial and Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | April 2, 2024 | |
Aggregate Available | 16,180 |
Description of Business
Description of Business | 3 Months Ended |
May 04, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business J.Jill, Inc., “J.Jill” or the “Company”, is a national lifestyle brand that provides apparel, footwear and accessories designed to help its customers move through a full life with ease. The brand represents an easy, thoughtful and inspired style that celebrates the totality of all women and designs its products with its core brand ethos in mind: keep it simple and make it matter. J.Jill offers a high touch customer experience through over 200 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 04, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Our interim condensed consolidated financial statements are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, in accordance with the rules of the Securities and Exchange Commission (the “SEC”) associated with reporting of interim period financial information. We consistently applied the accounting policies described in our Annual Report on Form 10-K (the “2023 Annual Report”) for the fiscal year ended February 3, 2024 (“Fiscal Year 2023”) in preparing these unaudited interim condensed consolidated financial statements. J.Jill operates on a 52- or 53-week fiscal year that ends on the Saturday that is closest to January 31. Each fiscal year generally is comprised of four 13-week fiscal quarters, although in the years with 53 weeks, the fourth quarter represents a 14-week period. The fiscal year ending February 1, 2025 (“Fiscal Year 2024”) is comprised of 52 weeks and Fiscal Year 2023 was comprised of 53 weeks. In the opinion of management, these interim condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The consolidated balance sheet as of February 3, 2024 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the thirteen weeks ended May 4, 2024 are not necessarily indicative of future results or results to be expected for Fiscal Year 2024. You should read these statements in conjunction with our audited consolidated financial statements and related notes in our 2023 Annual Report. Financial Statement Presentation Certain reclassifications have been made to prior periods to conform with the current period presentation. On the condensed consolidated statements of operations and comprehensive income, the Company reclassified amounts for interest income for the thirteen weeks ended April 29, 2023 from Interest expense, net to a separate financial statement line item to conform with the current presentation for the thirteen weeks ended May 4, 2024. On the consolidated statement of cash flows, the Company reclassified approximately $ 1.0 million of prepaid software project costs from Prepaid expenses and other current assets to Other assets for the thirteen weeks ended April 29, 2023. For further details refer “ Cloud-Based Software Arrangements ” below under Note 2. Summary of Significant Accounting Policies. Correction of Immaterial Error The Company had previously recorded processing fee income related to customer sales returns as a contra expense within Selling, general and administrative expenses rather than as a component of Net sales in the condensed consolidated statements of operations and comprehensive income. Beginning in Fiscal Year 2024, the Company will record this revenue as a component of Net sales within the Direct channel. The Company reclassified this income for the thirteen weeks ended April 29, 2023 , which increased previously reported Net sales and Selling, general and administrative expenses by $ 0.8 million. The Company has concluded that the reclassification of this income was immaterial to the prior period financial statements. Cost of Goods Sold Cost of goods sold (“COGS”) includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, adjustments and reserves for excess, aged and obsolete inventory. COGS does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of payroll and related expenses, occupancy costs, information systems costs and other operating expenses related to our stores and operations at the headquarters, including utilities, depreciation and amortization. These expenses also consist of marketing expense, including catalog production and mailing costs, warehousing, distribution and outbound shipping costs, customer service operations, consulting and software services, professional services and other administrative costs. Cloud-Based Software Arrangements The costs incurred to implement cloud computing arrangements hosted by third party vendors are capitalized when incurred during the application development phase, and recognized as Prepaid expenses and other current assets for the current portion or Other assets for the long-term portion. Implementation costs are subsequently amortized on a straight-line basis over the expected term of the related cloud service, beginning on the date the related software or module is ready for its intended use. The amortization of cloud-based software implementation costs is recorded as a component of Selling, general, and administrative expenses, the same line item as the expense for the associated hosting arrangement. The carrying value of cloud computing implementation costs are tested for impairment when an event or circumstance indicates that the asset might be impaired. Changes in cloud computing arrangement implementation costs are classified within operating activities in the consolidated statements of cash flows. For the thirteen weeks ended May 4, 2024 , the Company amortized $ 0.2 million of cloud-based software implementation costs. For the thirteen weeks ended April 29, 2023, the Company amortized an immaterial amount of cloud-based software implementation costs. As of May 4, 2024 , the Company had $ 3.0 million of gross capitalized cloud-based software implementation costs and $ 0.2 million of related accumulated amortization, for a net balance of $ 2.8 million, made up of $ 1.0 million recorded within Prepaid expenses and other current assets and $ 1.8 million recorded within Other assets on the Company’s consolidated balance sheets. As of February 3, 2024 , the Company had $ 2.5 million of gross capitalized cloud-based software implementation costs and $ 0.6 million of related accumulated amortization, for a net balance of $ 1.9 million, made up of $ 0.9 million recorded within Prepaid expenses and other current assets and $ 1.0 million recorded within Other assets on the Company’s consolidated balance sheets. Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. This ASU amends the FASB ASC in response to the SEC’s disclosure update and simplification initiative. This guidance will be applied prospectively with effective date for each amendment to be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If by June 30, 2027, the SEC has not removed the related disclosures from Regulation S-X or Regulation S-K, the pending amendments will not become effective for any entity. The Company is assessing what impact this guidance will have on its disclosures in the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting, Improvements to Reportable Segment Disclosures”. This ASU enhances the disclosures required about a public entity’s reportable segments in its annual and interim condensed consolidated financial statements. The amendments in this update require additional detailed and enhanced information about reportable segments’ expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on annual basis as well as an explanation of how CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU 2023-07 is effective for the Company for annual reporting periods beginning with the fiscal year ending February 1, 2025 and for interim reporting periods beginning in fiscal year 2026. Early adoption is permitted. The Company is assessing what impact this guidance will have on its disclosures in the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”. This ASU requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The other amendments in this update improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit), and (2) removing disclosures that are no longer considered cost beneficial or relevant. The amendments in ASU 2023-09 are effective for the fiscal year ending January 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its disclosures in the Company’s consolidated financial statements. |
Revenues
Revenues | 3 Months Ended |
May 04, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 3. Revenues Disaggregation of Revenue Net sales consist primarily of revenues, net of merchandise returns and discounts, generated from the sale of apparel and accessory merchandise through retail stores (“Retail”) and through our website and catalog orders (“Direct”). Net sales also include shipping and handling fees collected from customers, royalty revenues and marketing reimbursements related to our private label credit card agreement. Retail revenue is recognized at the time of sale and Direct revenue is recognized upon shipment of merchandise to the customer. The following table presents disaggregated revenues by source (in thousands): For the Thirteen Weeks Ended May 4, 2024 April 29, 2023 Retail $ 85,607 $ 82,204 Direct 75,906 68,042 Net sales $ 161,513 $ 150,246 Performance Obligations The Company has a remaining performance obligation of $ 0.5 million related to an upfront payment to support the marketing and promotion of the private label credit card program. This upfront payment will be amortized to revenue evenly through January 2031. Contract Liabilities The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to the customer. Total contract liabilities consisted of the following (in thousands): May 4, 2024 February 3, 2024 Contract liabilities: Upfront Payment (1) 547 570 Unredeemed gift cards (2) 5,792 7,005 Total contract liabilities $ 6,339 $ 7,575 (1) The short-term portion of the upfront payment is included in Accrued expenses and other current liabilities and the long-term portion of the upfront payment is included in Other long-term liabilities on the Company’s consolidated balance sheets. (2) Revenue recognized for the thirteen weeks ended May 4, 2024 related to the contract liability balance as of February 3, 2024 was $ 1,988 . The Company recognized approximately $ 2.9 million of revenue related to gift card redemptions and breakage for the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively. Revenue recognized consists of gift cards that were part of the unredeemed gift card balance at the beginning of the period as well as gift cards that were issued and redeemed during the period. Practical Expedients and Policy Elections The Company excludes from its revenue all amounts collected from customers for sales taxes that are remitted to taxing authorities. Shipping and handling activities that occur after control of related goods transfers to the customer are accounted for as fulfillment activities rather than assessing these activities as performance obligations. The Company does not disclose remaining performance obligations that have an expected duration of one year or less. |
Asset Impairments
Asset Impairments | 3 Months Ended |
May 04, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairments | 4. Asset Impairments Long-lived Asset Impairments For the thirteen weeks ended May 4, 2024 , the Company reduced the net carrying value of certain long-lived assets to their estimated fair value, which was determined using a discounted cash flows method. The Company recorded noncash impairment charges of $ 0.3 million related to leasehold improvements at certain store locations primarily due to the actual performance at these locations. The Company did no t record any impairment for the thirteen weeks ended April 29, 2023. Goodwill and Other Intangible Assets The balance of goodwill was $ 59.7 million at May 4, 2024 and February 3, 2024, respectively. The accumulated goodwill impairment losses as of May 4, 2024 were $ 137.3 million. A summary of other intangible assets as of May 4, 2024 and February 3, 2024 is as follows (in thousands): May 4, 2024 Weighted Average Useful Life (Years) Gross Accumulated Amortization Accumulated Impairment Carrying Amount Indefinite-lived: Trade name N/A $ 58,100 $ — $ 24,100 $ 34,000 Definite-lived: Customer relationships 13.2 134,200 100,942 2,620 30,638 Total intangible assets $ 192,300 $ 100,942 $ 26,720 $ 64,638 February 3, 2024 Weighted Average Useful Life (Years) Gross Accumulated Amortization Accumulated Impairment Carrying Amount Indefinite-lived: Trade name N/A $ 58,100 $ — $ 24,100 $ 34,000 Definite-lived: Customer relationships 13.2 134,200 99,334 2,620 32,246 Total intangible assets $ 192,300 $ 99,334 $ 26,720 $ 66,246 Total amortization expense for these amortizable intangible assets was $ 1.6 million and $ 1.7 million for the thirteen weeks ended May 4, 2024 and April 29, 2023 , respectively. Impairment Tests Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Definite-lived intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business. During the thirteen weeks ended May 4, 2024 and April 29, 2023 , the Company did not identify any events or circumstances that indicated the fair value of a reporting unit was less than its carrying value. |
Debt
Debt | 3 Months Ended |
May 04, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt The components of the Company’s outstanding long-term debt at May 4, 2024 and February 3, 2024 were as follows (in thousands): At May 4, 2024 Outstanding Principal Balance Original Issue Discount Capitalized Fees & Expenses Balance Sheet Term Loan due 2028 $ 166,250 $ ( 8,864 ) $ ( 2,954 ) $ 154,432 Less: Current portion (including Excess Cash Flow payment) ( 35,353 ) — — ( 35,353 ) Net long-term debt $ 130,897 $ ( 8,864 ) $ ( 2,954 ) $ 119,079 At February 3, 2024 Outstanding Principal Balance Original Issue Discount Capitalized Fees & Expenses Balance Sheet Term Loan due 2028 $ 168,438 $ ( 9,367 ) $ ( 3,123 ) $ 155,948 Less: Current portion (including Excess Cash Flow payment) ( 35,353 ) — — ( 35,353 ) Net long-term debt $ 133,085 $ ( 9,367 ) $ ( 3,123 ) $ 120,595 Term Loan Credit Agreement The Company is party to a secured $ 175.0 million term loan credit agreement (the “Term Loan Credit Agreement” and, such facility, the “Term Loan Facility”), dated April 5, 2023, by and among the lenders party thereto and Jefferies Finance LLC, as administrative and collateral agent, with a maturity date of May 8, 2028 . The Term Loan Facility is to be repaid in quarterly payments of $ 2.2 million from July 28, 2023 to May 2, 2025, and $ 3.3 million from August 1, 2025 to April 28, 2028 with the balance of the Term Loan Facility due upon maturity on May 8, 2028. Subsequent to May 4, 2024, on May 10, 2024, the Company made a voluntary principal prepayment on the Term Loan Credit Agreement of $ 58.2 million. Together with the required quarterly payment of $ 2.2 million that the Company made on April 26, 2024, the Company has repaid $ 60.4 million of debt under the Term Loan Credit Agreement in Fiscal Year 2024. In addition, the Company paid a $ 1.7 million premium, amounting to 3 % on the aggregate principal amount being prepaid, and $ 0.8 million towards interest in accordance with the provisions of the Term Loan Credit Agreement. The voluntary prepayment was in lieu of the Excess Cash Flow (“ECF”) payment of $ 26.6 million, which was rejected by the lenders as permitted under the provisions of the Term Loan Credit Agreement. In connection with the voluntary principal prepayment discussed above, in May 2024, the Company will recognize a loss of approximately $ 5.9 million, consisting of $ 4.2 million of accelerated amortization of the discount and fees and $ 1.7 million of prepayment premium, in its condensed consolidated statements of operations and comprehensive income. Following the voluntary prepayment, the remaining Term Loan Facility principal balance will be $ 108.1 million, which is to be repaid in three quarterly principal payments of $ 2.2 million through January 31, 2025, with the remaining balance of $ 101.5 million to be paid upon maturity on May 8, 2028. The remaining unamortized discount and fees will be $ 7.7 million, which will continue to be amortized over the remaining term through May 8, 2028. As of May 4, 2024, the Company was in compliance with all covenants. Priming and Subordinated Term Loans The Company was party to a priming and a subordinated credit agreement, dated as of September 30, 2020, by and among J.Jill, Inc., Jill Acquisition LLC, as the borrower, the lenders party thereto from time to time and Wilmington Trust, National Association, as administrative agent and collateral agent (as amended, the “Subordinated Credit Agreement” and, such facility, the Subordinated Facility), until it was repaid in full on April 5, 2023. Asset-Based Revolving Credit Agreement The Company is party to a secured $ 40.0 m illion asset-based revolving credit facility agreement (the “ABL Credit Agreement” and, such facility, the “ ABL Facility”), as amended, with a maturity date of May 10, 2028 (or 180 days prior to the maturity date of the Company’s Term Loan Credit Agreement if the maturity date of such Term Loan Facility has not been extended to a date that is at least 180 days after the maturity date of the ABL Credit Agreement). The Company had no short-term borrowings under the Company’s ABL Facility as of May 4, 2024 and February 3, 2024. The Company’s available borrowing capacity under the ABL Facility as of May 4, 2024 and February 3, 2024 was $ 35.7 million and $ 34.2 million, respectively. As of May 4, 2024 and February 3, 2024, there were outstanding letters of credit of $ 4.3 million and $ 5.8 million, respectively, which reduced the availability under the ABL Facility. As of May 4, 2024, the maximum commitment for letters of credit was $ 10.0 million. As of May 4, 2024 , the Company was in compliance with all covenants. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 04, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value require the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs other than quoted prices that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, including interest rates and yield curves, and market corroborated inputs. • Level 3 - Unobservable inputs for the assets or liabilities that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These are valued based on management’s estimates and assumptions that market participants would use in pricing the asset or liabilities. The following table presents the carrying value and fair value hierarchy for debt as of May 4, 2024 and February 3, 2024, respectively (in thousands): Fair Value as of May 4, 2024 Carrying Value Level 1 Level 2 Level 3 Financial instruments not carried at fair value: Total debt $ 154,432 $ — $ 161,650 $ — Total financial instruments not carried at fair value $ 154,432 $ — $ 161,650 $ — Fair Value as of February 3, 2024 Carrying Value Level 1 Level 2 Level 3 Financial instruments not carried at fair value: Total debt $ 155,948 $ — $ 161,871 $ — Total financial instruments not carried at fair value $ 155,948 $ — $ 161,871 $ — The Company’s debt instruments include the Term Loan Credit Agreement. The debt instruments are recorded at cost, net of debt issuance costs and any related discount. The fair value of the debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments. The Company believes that the carrying amounts of its other financial instruments, including cash, accounts receivable, accounts payable and any amounts drawn on its revolving credit facilities, consisting primarily of instruments without extended maturities, based on management’s estimates, approximates their fair value due to the short-term maturities of these instruments. Assets and Liabilities with Recurring Fair Value Measurements - Certain assets and liabilities may be measured at fair value on an ongoing basis. We did not elect to apply the fair value option for recording financial assets and financial liabilities. Other than total debt, we do not have any assets or liabilities which we measure at fair value on a recurring basis. Assets and Liabilities with Nonrecurring Fair Value Measurements - Certain assets and liabilities are not measured at fair value on an ongoing basis. These assets and liabilities, which include long-lived assets, goodwill, intangible assets, and debt are subject to fair value adjustment in certain circumstances. From time to time, the fair value is determined on these assets and liabilities as part of related impairment tests or for disclosure purposes. See Note 4. Asset Impairments , for additional information. |
Income Taxes
Income Taxes | 3 Months Ended |
May 04, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Company recorded an income tax provision of $ 6.2 million and $ 2.0 million during the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively. The effective tax rate was 27.2 % for the thirteen weeks ended May 4, 2024, and 29.9 % for the thirteen weeks ended April 29, 2023. The effective tax rate for the thirteen weeks ended May 4, 2024 differs from the federal statutory rate of 21 % primarily due to the impact of state and local income taxes and executive compensation limitations. The effective tax rate for the thirteen weeks ended April 29, 2023 differs from the federal statutory rate of 21 % primarily due to the impact of state and local income taxes, executive compensation limitations and non-deductible expenses. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
May 04, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 8. Net Income Per Share The following table summarizes the computation of basic and diluted net income per common share (“EPS”) (in thousands, except share and per share data): For the Thirteen Weeks Ended May 4, 2024 April 29, 2023 Numerator Net income $ 16,696 $ 4,596 Denominator Weighted average number of common shares outstanding 10,692,241 10,431,506 Assumed exercise of warrants 3,564,687 3,631,903 Weighted average common shares, basic 14,256,928 14,063,409 Dilutive effect of equity compensation awards 138,269 259,197 Weighted average common shares, diluted 14,395,197 14,322,606 Net income per common share, basic $ 1.17 $ 0.33 Net income per common share, diluted $ 1.16 $ 0.32 Equity compensation awards are excluded from the diluted earnings per share calculation when their inclusion would have an antidilutive effect such as when the Company has a net loss for the reporting period, or if the assumed proceeds per share of the award is in excess of the related fiscal period’s average price of the Company’s common stock. Accordingly, 279,786 and 35,195 shares for the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively, were excluded from the diluted earnings per share calculation because their inclusion would be antidilutive. For the thirteen weeks ended May 4, 2024 and April 29, 2023, warrants issued to the Subordinated Facility holders have been included in the denominator for basic and diluted EPS calculations as the exercise of the warrants is near certain because the exercise price is non-substantive in relation to the fair value of the common shares to be issued upon exercise. In accordance with the terms of the warrant agreement, dated as of October 2, 2020, as amended on December 4, 2020, in the event of a dividend payment on the shares of common stock, the exercise ratio in effect immediately following the record date of such dividend distribution date shall be proportionately adjusted to give effect to the total number of shares of common Stock constituting such dividend. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
May 04, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 9. Equity-Based Compensation The J.Jill, Inc. Omnibus Equity Incentive Plan, as amended and restated on June 1, 2023 (the “A&R Plan”), reserves a maximum 2,043,453 shares of common stock for issuance upon exercise of options, or in respect of granted awards. As of May 4, 2024, the A&R Plan had an aggregate of 846,607 shares remaining for future issuance pursuant to awards that may be granted by the Board of Directors (the “Board”). During the thirteen weeks ended May 4, 2024 and April 29, 2023, the Board approved and granted restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”) under the A&R Plan. Restricted Stock Units For the thirteen weeks ended May 4, 2024 and April 29, 2023 , the Board granted RSUs under the A&R Plan, which vest in one to three equal annual installments, beginning one year from the date of grant. The grant-date fair value of RSUs is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. In the event of any issuance of a cash dividend on the shares of Common stock, the participant shall be credited with dividend equivalent RSUs, which are subject to the same vesting terms as the RSUs. For the thirteen weeks ended May 4, 2024 and April 29, 2023, the fair market value of RSUs was determined based on the market price of the Company’s shares on the date of the grant. The following table summarizes the RSU awards activity for the thirteen weeks ended May 4, 2024: Number of RSUs Weighted Average Grant Date Fair Value Unvested units outstanding at February 3, 2024 458,299 $ 14.15 Granted 207,205 $ 32.55 Vested ( 201,827 ) $ 12.20 Unvested units outstanding at May 4, 2024 463,677 $ 23.22 As of May 4, 2024, there was $ 9.6 million of total unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average service period of 2.3 years. The total fair value of RSUs vested during the thirteen weeks ended May 4, 2024 and April 29, 2023 was $ 2.5 million and $ 2.6 million, respectively. Performance Stock Units For the thirteen weeks ended May 4, 2024 and April 29, 2023, the Board granted PSUs, a portion of which are based on achieving an adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) goal and the remaining portion is based on achieving an annualized absolute total shareholder return (“TSR”) growth goal. Each PSU award reflects a target number of shares (“Target Shares”) that may be issued to the award recipient provided the employee continues to provide services to the Company throughout the three year performance period of the award. For Adjusted EBITDA based PSUs, the number of units earned will be determined based on the achievement of the predetermined Adjusted EBITDA goals at the end of each performance year, and for TSR based PSUs, the number of units earned will be determined based on the achievement of the predetermined TSR growth goal at the end of a three-year performance period. The TSR is based on J.Jill’s 30 -trading day average beginning and closing price of the three-year performance period, assuming the reinvestment of dividends. Depending on the performance results based on Adjusted EBITDA and TSR, the actual number of shares that a grant recipient receives at the end of the vesting period may range from 0 % to 200 % of the Target Shares granted. PSUs are converted into shares of common stock upon vesting, under the terms of the A&R Plan. In the event of any issuance of a cash dividend on the shares of Common stock, the participant shall be credited with dividend equivalent PSUs, a portion of which are based on an Adjusted EBITDA goal and the remaining portion is based on achieving an annualized TSR growth goal, each subject to the same vesting terms as the corresponding PSUs. The fair value of the PSUs granted during the thirteen weeks ended May 4, 2024 for which the performance is based on an Adjusted EBITDA goal was determined based on the market price of the Company’s shares on the date of the grant. Additionally, for those awards whose performance is based on a TSR growth goal, the fair value was estimated on the grant date using a Monte Carlo simulation with the below noted assumptions: Monte Carlo Simulation Assumptions Risk Free Interest Rate 4.49 % Expected Dividend Yield — Expected Volatility 47.58 % Expected Term 2.83 The Company recognizes equity-based compensation expense related to Adjusted EBITDA based PSUs based on the Company’s estimate of the percentage of the award that will be achieved. The Company evaluates the estimate on these awards on a quarterly basis and adjusts equity-based compensation expense related to these awards, as appropriate. For the TSR based PSUs, the equity-based compensation expense is recognized on a straight-line basis over the three-year performance period based on the grant-date fair value of these PSUs. The following table summarizes the PSU awards activity for the thirteen weeks ended May 4, 2024: Number of PSUs Weighted Average Grant Date Fair Value Unvested units outstanding at February 3, 2024 62,414 $ 30.50 Granted 103,820 $ 40.33 Unvested units outstanding at May 4, 2024 166,234 $ 36.64 As of May 4, 2024, there was $ 5.4 million of total unrecognized compensation expense related to unvested PSUs, which is expected to be recognized over a weighted-average service period of 2.4 years. Equity-based compensation expense for all award types of $ 1.3 million and $ 0.9 million was recorded in the Selling, general and administrative expenses in the consolidated statement of operations and comprehensive income for the thirteen weeks ended May 4, 2024 and April 29, 2023 , respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
May 04, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions TowerBrook Capital Partners, LP (“TowerBrook”) controls a majority of the voting power of our outstanding voting stock, and as a result we are a controlled company within the meaning of the New York Stock Exchange corporate governance standards. The Company was party to the Subordinated Credit Agreement, with a group of lenders that includes certain affiliates of TowerBrook and the Chairman of our Board, until it was repaid in full on April 5, 2023. For the thirteen weeks ended April 29, 2023, the Company incurred $ 1.1 million of Interest expense - related party associated with the Subordinated Credit Agreement in the condensed consolidated statements of operations and comprehensive income. For the thirteen weeks ended May 4, 2024 and April 29, 2023, the Company incurred an immaterial amount of other related party transactions. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 04, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings The Company is subject to various legal proceedings that arise in the ordinary course of business. Although the outcome of such proceedings cannot be predicted with certainty, management does not believe that the Company is presently party to any legal proceedings the resolution of which management believes would have a material adverse effect on the Company’s financial statements. The Company establishes reserves for specific legal matters, including legal costs, when the Company determines that the likelihood of an unfavorable outcome is probable, and the loss is reasonably estimable. |
Subsequent Event
Subsequent Event | 3 Months Ended |
May 04, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | 12. Subsequent Events On May 10, 2024, the Company made a voluntary prepayment on the Term Loan Credit Agreement. See Note 5. Debt for additional information regarding the Company’s ECF payment and the voluntary prepayment on the Term Loan Credit Agreement. On May 14, 2024, the Board declared an initial quarterly cash dividend of $ 0.07 per share payable on June 12, 2024 to stockholders of record as of May 29, 2024. The Company intends to pay dividends quarterly in the future, subject to market conditions and the approval by the Board of any such dividends . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 04, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our interim condensed consolidated financial statements are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, in accordance with the rules of the Securities and Exchange Commission (the “SEC”) associated with reporting of interim period financial information. We consistently applied the accounting policies described in our Annual Report on Form 10-K (the “2023 Annual Report”) for the fiscal year ended February 3, 2024 (“Fiscal Year 2023”) in preparing these unaudited interim condensed consolidated financial statements. J.Jill operates on a 52- or 53-week fiscal year that ends on the Saturday that is closest to January 31. Each fiscal year generally is comprised of four 13-week fiscal quarters, although in the years with 53 weeks, the fourth quarter represents a 14-week period. The fiscal year ending February 1, 2025 (“Fiscal Year 2024”) is comprised of 52 weeks and Fiscal Year 2023 was comprised of 53 weeks. In the opinion of management, these interim condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the financial position and results of operations of the Company. The consolidated balance sheet as of February 3, 2024 is derived from the audited consolidated balance sheet as of that date. The unaudited results of operations for the thirteen weeks ended May 4, 2024 are not necessarily indicative of future results or results to be expected for Fiscal Year 2024. You should read these statements in conjunction with our audited consolidated financial statements and related notes in our 2023 Annual Report. |
Financial Statement Presentation | Financial Statement Presentation Certain reclassifications have been made to prior periods to conform with the current period presentation. On the condensed consolidated statements of operations and comprehensive income, the Company reclassified amounts for interest income for the thirteen weeks ended April 29, 2023 from Interest expense, net to a separate financial statement line item to conform with the current presentation for the thirteen weeks ended May 4, 2024. On the consolidated statement of cash flows, the Company reclassified approximately $ 1.0 million of prepaid software project costs from Prepaid expenses and other current assets to Other assets for the thirteen weeks ended April 29, 2023. For further details refer “ Cloud-Based Software Arrangements ” below under Note 2. Summary of Significant Accounting Policies. |
Correction of Immaterial Error | Correction of Immaterial Error The Company had previously recorded processing fee income related to customer sales returns as a contra expense within Selling, general and administrative expenses rather than as a component of Net sales in the condensed consolidated statements of operations and comprehensive income. Beginning in Fiscal Year 2024, the Company will record this revenue as a component of Net sales within the Direct channel. The Company reclassified this income for the thirteen weeks ended April 29, 2023 , which increased previously reported Net sales and Selling, general and administrative expenses by $ 0.8 million. The Company has concluded that the reclassification of this income was immaterial to the prior period financial statements. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold (“COGS”) includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, adjustments and reserves for excess, aged and obsolete inventory. COGS does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of payroll and related expenses, occupancy costs, information systems costs and other operating expenses related to our stores and operations at the headquarters, including utilities, depreciation and amortization. These expenses also consist of marketing expense, including catalog production and mailing costs, warehousing, distribution and outbound shipping costs, customer service operations, consulting and software services, professional services and other administrative costs. |
Cloud-Based Software Arrangements | Cloud-Based Software Arrangements The costs incurred to implement cloud computing arrangements hosted by third party vendors are capitalized when incurred during the application development phase, and recognized as Prepaid expenses and other current assets for the current portion or Other assets for the long-term portion. Implementation costs are subsequently amortized on a straight-line basis over the expected term of the related cloud service, beginning on the date the related software or module is ready for its intended use. The amortization of cloud-based software implementation costs is recorded as a component of Selling, general, and administrative expenses, the same line item as the expense for the associated hosting arrangement. The carrying value of cloud computing implementation costs are tested for impairment when an event or circumstance indicates that the asset might be impaired. Changes in cloud computing arrangement implementation costs are classified within operating activities in the consolidated statements of cash flows. For the thirteen weeks ended May 4, 2024 , the Company amortized $ 0.2 million of cloud-based software implementation costs. For the thirteen weeks ended April 29, 2023, the Company amortized an immaterial amount of cloud-based software implementation costs. As of May 4, 2024 , the Company had $ 3.0 million of gross capitalized cloud-based software implementation costs and $ 0.2 million of related accumulated amortization, for a net balance of $ 2.8 million, made up of $ 1.0 million recorded within Prepaid expenses and other current assets and $ 1.8 million recorded within Other assets on the Company’s consolidated balance sheets. As of February 3, 2024 , the Company had $ 2.5 million of gross capitalized cloud-based software implementation costs and $ 0.6 million of related accumulated amortization, for a net balance of $ 1.9 million, made up of $ 0.9 million recorded within Prepaid expenses and other current assets and $ 1.0 million recorded within Other assets on the Company’s consolidated balance sheets. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. This ASU amends the FASB ASC in response to the SEC’s disclosure update and simplification initiative. This guidance will be applied prospectively with effective date for each amendment to be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If by June 30, 2027, the SEC has not removed the related disclosures from Regulation S-X or Regulation S-K, the pending amendments will not become effective for any entity. The Company is assessing what impact this guidance will have on its disclosures in the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting, Improvements to Reportable Segment Disclosures”. This ASU enhances the disclosures required about a public entity’s reportable segments in its annual and interim condensed consolidated financial statements. The amendments in this update require additional detailed and enhanced information about reportable segments’ expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on annual basis as well as an explanation of how CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU 2023-07 is effective for the Company for annual reporting periods beginning with the fiscal year ending February 1, 2025 and for interim reporting periods beginning in fiscal year 2026. Early adoption is permitted. The Company is assessing what impact this guidance will have on its disclosures in the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”. This ASU requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The other amendments in this update improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit), and (2) removing disclosures that are no longer considered cost beneficial or relevant. The amendments in ASU 2023-09 are effective for the fiscal year ending January 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its disclosures in the Company’s consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
May 04, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues by Source | The following table presents disaggregated revenues by source (in thousands): For the Thirteen Weeks Ended May 4, 2024 April 29, 2023 Retail $ 85,607 $ 82,204 Direct 75,906 68,042 Net sales $ 161,513 $ 150,246 |
Schedule of Contract Liabilities | Total contract liabilities consisted of the following (in thousands): May 4, 2024 February 3, 2024 Contract liabilities: Upfront Payment (1) 547 570 Unredeemed gift cards (2) 5,792 7,005 Total contract liabilities $ 6,339 $ 7,575 (1) The short-term portion of the upfront payment is included in Accrued expenses and other current liabilities and the long-term portion of the upfront payment is included in Other long-term liabilities on the Company’s consolidated balance sheets. (2) Revenue recognized for the thirteen weeks ended May 4, 2024 related to the contract liability balance as of February 3, 2024 was $ 1,988 . |
Asset Impairments (Tables)
Asset Impairments (Tables) | 3 Months Ended |
May 04, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amount of Finite-lived Intangible Assets Amortization Expense | A summary of other intangible assets as of May 4, 2024 and February 3, 2024 is as follows (in thousands): |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
May 04, 2024 | |
Debt Disclosure [Abstract] | |
Components of Outstanding Long-term Debt | The components of the Company’s outstanding long-term debt at May 4, 2024 and February 3, 2024 were as follows (in thousands): At May 4, 2024 Outstanding Principal Balance Original Issue Discount Capitalized Fees & Expenses Balance Sheet Term Loan due 2028 $ 166,250 $ ( 8,864 ) $ ( 2,954 ) $ 154,432 Less: Current portion (including Excess Cash Flow payment) ( 35,353 ) — — ( 35,353 ) Net long-term debt $ 130,897 $ ( 8,864 ) $ ( 2,954 ) $ 119,079 At February 3, 2024 Outstanding Principal Balance Original Issue Discount Capitalized Fees & Expenses Balance Sheet Term Loan due 2028 $ 168,438 $ ( 9,367 ) $ ( 3,123 ) $ 155,948 Less: Current portion (including Excess Cash Flow payment) ( 35,353 ) — — ( 35,353 ) Net long-term debt $ 133,085 $ ( 9,367 ) $ ( 3,123 ) $ 120,595 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 04, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the carrying value and fair value hierarchy for debt as of May 4, 2024 and February 3, 2024, respectively (in thousands): Fair Value as of May 4, 2024 Carrying Value Level 1 Level 2 Level 3 Financial instruments not carried at fair value: Total debt $ 154,432 $ — $ 161,650 $ — Total financial instruments not carried at fair value $ 154,432 $ — $ 161,650 $ — Fair Value as of February 3, 2024 Carrying Value Level 1 Level 2 Level 3 Financial instruments not carried at fair value: Total debt $ 155,948 $ — $ 161,871 $ — Total financial instruments not carried at fair value $ 155,948 $ — $ 161,871 $ — |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
May 04, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table summarizes the computation of basic and diluted net income per common share (“EPS”) (in thousands, except share and per share data): For the Thirteen Weeks Ended May 4, 2024 April 29, 2023 Numerator Net income $ 16,696 $ 4,596 Denominator Weighted average number of common shares outstanding 10,692,241 10,431,506 Assumed exercise of warrants 3,564,687 3,631,903 Weighted average common shares, basic 14,256,928 14,063,409 Dilutive effect of equity compensation awards 138,269 259,197 Weighted average common shares, diluted 14,395,197 14,322,606 Net income per common share, basic $ 1.17 $ 0.33 Net income per common share, diluted $ 1.16 $ 0.32 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
May 04, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Fair Value of PSUs Granted | The fair value of the PSUs granted during the thirteen weeks ended May 4, 2024 for which the performance is based on an Adjusted EBITDA goal was determined based on the market price of the Company’s shares on the date of the grant. Additionally, for those awards whose performance is based on a TSR growth goal, the fair value was estimated on the grant date using a Monte Carlo simulation with the below noted assumptions: Monte Carlo Simulation Assumptions Risk Free Interest Rate 4.49 % Expected Dividend Yield — Expected Volatility 47.58 % Expected Term 2.83 |
Restricted Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of RSUs and PSUs Award Activity | The following table summarizes the RSU awards activity for the thirteen weeks ended May 4, 2024: Number of RSUs Weighted Average Grant Date Fair Value Unvested units outstanding at February 3, 2024 458,299 $ 14.15 Granted 207,205 $ 32.55 Vested ( 201,827 ) $ 12.20 Unvested units outstanding at May 4, 2024 463,677 $ 23.22 |
Performance Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of RSUs and PSUs Award Activity | The following table summarizes the PSU awards activity for the thirteen weeks ended May 4, 2024: Number of PSUs Weighted Average Grant Date Fair Value Unvested units outstanding at February 3, 2024 62,414 $ 30.50 Granted 103,820 $ 40.33 Unvested units outstanding at May 4, 2024 166,234 $ 36.64 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | May 04, 2024 Store |
Minimum [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of stores | 200 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2024 | Apr. 29, 2023 | Feb. 03, 2024 | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Prepaid software maintenance costs | $ 1,000 | ||
Net sales | $ 161,513 | 150,246 | |
Selling, general and administrative expenses | 89,112 | 82,972 | |
Amortization of cloud-based software implementation costs | 200 | ||
Gross capitalized cloud-based software implementation costs | 3,000 | $ 2,500 | |
Capitalized computer software, accumulated amortization | 200 | 600 | |
Capitalized computer software, net balance | 2,800 | 1,900 | |
Prepaid Expenses and Other Current Assets [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Capitalized computer software, net balance | 1,000 | 900 | |
Other Assets [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Capitalized computer software, net balance | $ 1,800 | $ 1,000 | |
Reclassification [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Net sales | 800 | ||
Selling, general and administrative expenses | $ 800 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregated Revenues by Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 161,513 | $ 150,246 |
Retail [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 85,607 | 82,204 |
Direct [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 75,906 | $ 68,042 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Liabilities (Detail) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 |
Contract liabilities: | ||
Upfront payment | $ 547 | $ 570 |
Unredeemed gift cards | 5,792 | 7,005 |
Total contract liabilities | $ 6,339 | $ 7,575 |
Revenues - Schedule of Contra_2
Revenues - Schedule of Contract Liabilities (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Feb. 03, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized related to the contract liability | $ 1,988 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 0.5 | |
Revenue recognized related to gift card redemptions and breakage | $ 2.9 | $ 2.9 |
Asset Impairments - Additional
Asset Impairments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2024 | Apr. 29, 2023 | Feb. 03, 2024 | |
Goodwill | $ 59,697 | $ 59,697 | |
Impairment of long-lived assets | 253 | $ 0 | |
Goodwill, impaired, accumulated impairment loss | 137,300 | ||
Amortization expense for intangible assets | 1,600 | $ 1,700 | |
Leasehold Improvements [Member] | |||
Impairment of long-lived assets | $ 300 |
Asset Impairments - Summary of
Asset Impairments - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 |
Definite-lived Intangible Assets, Accumulated Amortization | $ 100,942 | $ 99,334 |
Definite-lived Intangible Assets, Accumulated Impairment | 26,720 | 26,720 |
Definite-lived Intangible Assets, Carrying Amount | 64,638 | 66,246 |
Total Intangible Assets, Gross | 192,300 | 192,300 |
Trade Name [Member] | ||
Indefinite-lived, Gross | 58,100 | 58,100 |
Indefinite-lived, Accumulated Impairment | 24,100 | 24,100 |
Indefinite-lived, Accumulated Impairment | $ 34,000 | $ 34,000 |
Customer Relationships [Member] | ||
Useful Life | 13 years 2 months 12 days | 13 years 2 months 12 days |
Definite-lived Intangible Assets, Gross | $ 134,200 | $ 134,200 |
Definite-lived Intangible Assets, Accumulated Amortization | 100,942 | 99,334 |
Definite-lived Intangible Assets, Accumulated Impairment | 2,620 | 2,620 |
Definite-lived Intangible Assets, Carrying Amount | $ 30,638 | $ 32,246 |
Debt - Components of Outstandin
Debt - Components of Outstanding Long-term Debt (Detail) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 |
Debt Instrument [Line Items] | ||
Original Issue Discount | $ (8,864) | $ (9,367) |
Outstanding Principal Balance, Current portion (including Excess Cash Flow payment) | (35,353) | (35,353) |
Balance Sheet, Current portion (including Excess Cash Flow payment) | (35,353) | (35,353) |
Outstanding Principal Balance, Net long-term debt | 130,897 | 133,085 |
Capitalized Fees & Expenses, Net long-term debt | (2,954) | (3,123) |
Balance Sheet, Net long-term debt | 119,079 | 120,595 |
Secured Debt [Member] | Term Loan Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | 166,250 | 168,438 |
Original Issue Discount | (8,864) | (9,367) |
Capitalized Fees & Expenses | (2,954) | (3,123) |
Balance Sheet | $ 154,432 | $ 155,948 |
Debt - Term Loan Credit Agreeme
Debt - Term Loan Credit Agreement (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
May 10, 2024 | Apr. 26, 2024 | Apr. 05, 2023 | May 31, 2024 | May 04, 2024 | Feb. 03, 2024 | |
Debt Instrument [Line Items] | ||||||
Unamortized discount and fees | $ 8,864 | $ 9,367 | ||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest payable | $ 800 | |||||
Term Loan Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, periodic payment maturity date | May 08, 2028 | |||||
Principal amount of term loan | $ 175,000 | |||||
Quarterly payments | $ 2,200 | 2,200 | ||||
Principal repayments | $ (60,400) | |||||
Term Loan Credit Agreement [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of term loan | 108,100 | |||||
Quarterly payments | 2,200 | |||||
Principal repayments | (58,200) | |||||
Debt instrument, premium paid | $ 1,700 | |||||
Percentage of aggregate principle amount | 3% | |||||
Excess cash flow payment | $ 26,600 | |||||
Loss on voluntary principal prepayment | $ 5,900 | |||||
Accelerated amortization of discount and fees | 4,200 | |||||
Prepayment premium | $ 1,700 | |||||
Frequency of periodic payments | three quarterly principal payments | |||||
Unamortized discount and fees | $ 7,700 | |||||
Term Loan Credit Agreement [Member] | August 1, 2025 to April 28, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly payments | $ 3,300 | |||||
Term Loan Credit Agreement [Member] | August 1, 2025 to April 28, 2028 [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly payments | $ 101,500 |
Debt - Priming and Subordinated
Debt - Priming and Subordinated Term Loans (Detail) $ in Thousands | 3 Months Ended |
Apr. 29, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Loss on debt refinancing | $ 12,702 |
Debt - Asset-Based Revolving Cr
Debt - Asset-Based Revolving Credit Agreement (Detail) - USD ($) | 3 Months Ended | |
May 04, 2024 | Feb. 03, 2024 | |
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 10,000,000 | |
Maturity date decription | (the “ABL Credit Agreement” and, such facility, the “ABL Facility”), as amended, with a maturity date of May 10, 2028 (or 180 days prior to the maturity date of the Company’s Term Loan Credit Agreement if the maturity date of such Term Loan Facility has not been extended to a date that is at least 180 days after the maturity date of the ABL Credit Agreement). | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility drawn or outstanding | $ 4,300,000 | $ 5,800,000 |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total availability related to the facility | $ 40,000,000 | |
Debt instrument, initial maturity date | May 10, 2028 | |
Credit Facility drawn or outstanding | $ 0 | 0 |
Credit Facility available borrowing capacity | $ 35,700,000 | $ 34,200,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | May 04, 2024 | Feb. 03, 2024 |
Carrying Value [Member] | ||
Financial instruments not carried at fair value: | ||
Total financial instruments not carried at fair value | $ 154,432 | $ 155,948 |
Carrying Value [Member] | Debt [Member] | ||
Financial instruments not carried at fair value: | ||
Total financial instruments not carried at fair value | 154,432 | 155,948 |
Level 2 [Member] | ||
Financial instruments not carried at fair value: | ||
Total financial instruments not carried at fair value | 161,650 | 161,871 |
Level 2 [Member] | Debt [Member] | ||
Financial instruments not carried at fair value: | ||
Total financial instruments not carried at fair value | $ 161,650 | $ 161,871 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax provision | $ 6,228 | $ 1,965 |
U.S. Federal corporate income tax rate | 21% | 21% |
Effective tax rate | 27.20% | 29.90% |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share Attributable to Common Shareholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Numerator | ||
Net income attributable to common shareholders | $ 16,696 | $ 4,596 |
Denominator | ||
Weighted average number of common shares outstanding | 10,692,241 | 10,431,506 |
Assumed exercise of warrants | 3,564,687 | 3,631,903 |
Weighted average common shares, basic | 14,256,928 | 14,063,409 |
Dilutive effect of equity compensation awards | 138,269 | 259,197 |
Weighted average common shares, diluted | 14,395,197 | 14,322,606 |
Basic | $ 1.17 | $ 0.33 |
Diluted | $ 1.16 | $ 0.32 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Antidilutive equity awards excluded from the computation of diluted earnings per share | 279,786 | 35,195 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | |||
May 04, 2024 USD ($) Trading $ / shares shares | Apr. 29, 2023 USD ($) | Jun. 01, 2024 shares | Feb. 03, 2024 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||
Selling General and Administrative Expenses [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Equity based compensation expense | $ 1.3 | $ 0.9 | ||
Restricted Stock Units [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Restricted stock units installment terms | vest in one to three equal annual installments, beginning one year from the date of grant. | vest in one to three equal annual installments, beginning one year from the date of grant. | ||
Total unrecognized compensation expense | $ 9.6 | |||
Total unrecognized compensation expense to be recognized, weighted average service period | 2 years 3 months 18 days | |||
Total fair value of restricted stock vested | $ 2.5 | $ 2.6 | ||
Performance Stock Units [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total unrecognized compensation expense | $ 5.4 | |||
Total unrecognized compensation expense to be recognized, weighted average service period | 2 years 4 months 24 days | |||
Number of trading days | Trading | 30 | |||
Performance period | 3 years | |||
Performance Stock Units [Member] | Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Vesting period percentage | 0% | |||
Performance Stock Units [Member] | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Vesting period percentage | 200% | |||
Omnibus Equity Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares available for grant | shares | 846,607 | |||
Omnibus Equity Incentive Plan | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Common stock reserved for issuance | shares | 2,043,453 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Fair Value of PSUs Granted (Detail) - Performance Stock Units [Member] | 3 Months Ended |
May 04, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Risk Free Interest Rate | 4.49% |
Expected Volatility | 47.58% |
Expected Term | 2 years 9 months 29 days |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of RSU and PSU Award Activity (Detail) | 3 Months Ended |
May 04, 2024 $ / shares shares | |
Restricted Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Units, Beginning Balance | shares | 458,299 |
Number of Units, Granted | shares | 207,205 |
Number of Units, Vested | shares | (201,827) |
Number of Units, Ending Balance | shares | 463,677 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 14.15 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 32.55 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 12.2 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 23.22 |
Performance Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Units, Beginning Balance | shares | 62,414 |
Number of Units, Granted | shares | 103,820 |
Number of Units, Ending Balance | shares | 166,234 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 30.5 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 40.33 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 36.64 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2024 | Apr. 29, 2023 | |
Related Party Transaction [Line Items] | ||
Interest expense | $ 6,436 | $ 5,627 |
TowerBrook Capital Partners L.P [Member] | ||
Related Party Transaction [Line Items] | ||
Interest expense | $ 1,100 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | May 14, 2024 $ / shares |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividends declared per share | $ 0.07 |