Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Jun. 15, 2020 | Aug. 02, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JILL | ||
Entity Registrant Name | J.Jill, Inc. | ||
Entity Central Index Key | 0001687932 | ||
Current Fiscal Year End Date | --02-01 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 23,543,801 | ||
Entity Common Stock, Shares Outstanding | 44,774,201 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-38026 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-1459825 | ||
Entity Address, Address Line One | 4 Batterymarch Park Quincy | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02169 | ||
City Area Code | (617) | ||
Local Phone Number | 376-4300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of Part II of this Form 10-K are incorporated by reference from the Registrant’s definitive proxy statement for its 2020 annual meeting of shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash | $ 21,527 | $ 66,204 |
Accounts receivable | 6,568 | 4,007 |
Inventories, net | 72,599 | 77,349 |
Prepaid expenses and other current assets | 22,256 | 27,734 |
Total current assets | 122,950 | 175,294 |
Property and equipment, net | 107,645 | 118,044 |
Intangible assets, net | 112,814 | 136,177 |
Goodwill | 77,597 | 197,026 |
Operating lease assets, net | 211,332 | |
Other assets | 1,650 | 447 |
Total assets | 633,988 | 626,988 |
Current liabilities: | ||
Accounts payable | 43,053 | 55,012 |
Accrued expenses and other current liabilities | 42,712 | 45,306 |
Current portion of long-term debt | 2,799 | 2,799 |
Current portion of operating lease liabilities | 33,875 | |
Total current liabilities | 122,439 | 103,117 |
Long-term debt, net of discount and current portion | 231,200 | 237,464 |
Operating lease liabilities, net of current portion | 208,800 | |
Deferred income taxes | 31,034 | 41,842 |
Other liabilities | 1,950 | 30,770 |
Total liabilities | 595,423 | 413,193 |
Commitments and contingencies (see Note 11) | ||
Shareholders' Equity | ||
Common stock, par value $0.01 per share; 250,000,000 shares authorized; 44,288,127 and 43,672,418 shares issued and outstanding at February 1, 2020 and February 2, 2019, respectively | 443 | 437 |
Additional paid-in capital | 125,076 | 121,635 |
Accumulated (deficit) earnings | (86,954) | 91,723 |
Total shareholders' equity | 38,565 | 213,795 |
Total liabilities and shareholders' equity | $ 633,988 | $ 626,988 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 44,288,127 | 43,672,418 |
Common stock, shares outstanding | 44,288,127 | 43,672,418 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 168,064 | $ 166,085 | $ 180,744 | $ 176,452 | $ 170,902 | $ 174,106 | $ 179,713 | $ 181,541 | $ 691,345 | $ 706,262 | $ 698,145 |
Costs of goods sold | 68,030 | 59,137 | 75,403 | 60,196 | 63,081 | 58,643 | 63,058 | 61,200 | 262,766 | 245,982 | 234,065 |
Gross profit | 100,034 | 106,948 | 105,341 | 116,256 | 107,821 | 115,463 | 116,655 | 120,341 | 428,579 | 460,280 | 464,080 |
Selling, general and administrative expenses | 100,954 | 97,972 | 104,698 | 105,445 | 99,794 | 101,589 | 97,365 | 100,294 | 409,069 | 399,042 | 394,893 |
Impairment of goodwill | 31,000 | 88,428 | 119,428 | ||||||||
Impairment of indefinite-lived intangible assets | 5,100 | 7,000 | 12,100 | 12,100 | |||||||
Operating (loss) income | (37,020) | 8,976 | (94,785) | 10,811 | 8,027 | 13,874 | 19,290 | 20,047 | (112,018) | 61,238 | 69,187 |
Interest expense, net | 4,719 | 4,826 | 5,019 | 5,007 | 4,696 | 4,698 | 4,853 | 4,817 | 19,571 | 19,064 | 19,261 |
(Loss) income before provision for income taxes | (41,739) | 4,150 | (99,804) | 5,804 | 3,331 | 9,176 | 14,437 | 15,230 | (131,589) | 42,174 | 49,926 |
Income tax (benefit) provision | (3,154) | 1,763 | (3,069) | 1,438 | 1,237 | 2,488 | 3,952 | 3,972 | (3,022) | 11,649 | (5,439) |
Net (loss) income and total comprehensive income | $ (38,585) | $ 2,387 | $ (96,735) | $ 4,366 | $ 2,094 | $ 6,688 | $ 10,485 | $ 11,258 | $ (128,567) | $ 30,525 | $ 55,365 |
Net (loss) income per common share attributable to common shareholders: | |||||||||||
Basic | $ (0.88) | $ 0.05 | $ (2.21) | $ 0.10 | $ 0.05 | $ 0.16 | $ 0.24 | $ 0.27 | $ (2.94) | $ 0.71 | $ 1.32 |
Diluted | $ (0.88) | $ 0.05 | $ (2.21) | $ 0.10 | $ 0.05 | $ 0.15 | $ 0.23 | $ 0.26 | $ (2.94) | $ 0.69 | $ 1.27 |
Weighted average number of common shares outstanding: | |||||||||||
Basic | 44,017,340 | 43,838,667 | 43,793,348 | 43,327,519 | 43,060,392 | 42,953,173 | 42,855,366 | 42,216,331 | 43,749,324 | 42,771,316 | 41,926,157 |
Diluted | 44,017,340 | 43,950,702 | 43,793,348 | 44,478,153 | 44,359,599 | 44,475,793 | 44,716,193 | 43,407,414 | 43,749,324 | 44,239,751 | 43,571,746 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' / Members' Equity - USD ($) $ in Thousands | Total | Common Units [Member] | Common Stock [Member] | Contributed Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings (Deficit) [Member] | |
Beginning balance at Jan. 28, 2017 | $ 122,864 | $ 116,743 | $ 6,121 | ||||
Beginning balance, units at Jan. 28, 2017 | 1,000,000 | ||||||
Other equity transactions | 305 | 305 | |||||
Corporate conversion | $ (117,048) | $ 117,048 | |||||
Corporate conversion, units | (1,000,000) | ||||||
Issuance of common stock | $ 437 | (437) | |||||
Issuance of Common Stock, shares | 43,747,944 | ||||||
Vesting of restricted stock, shares | 4,846 | ||||||
Equity-based compensation | 782 | 782 | |||||
Net income (loss) | 55,365 | 55,365 | |||||
Ending Balance at Feb. 03, 2018 | 179,316 | $ 437 | 117,393 | 61,486 | |||
Ending balance, shares at Feb. 03, 2018 | 43,752,790 | ||||||
Adoption of ASU | ASU 2014-09 [Member] | [1] | (288) | (288) | ||||
Vesting of restricted stock | 1 | $ 1 | |||||
Vesting of restricted stock, shares | 13,326 | ||||||
Forfeiture of restricted stock awards | (2) | $ (2) | |||||
Forfeiture of restricted stock awards, shares | (142,542) | ||||||
Common stock issued under employee stock purchase plan | 233 | $ 1 | 232 | ||||
Common stock issued under employee stock purchase plan, shares | 48,844 | ||||||
Equity-based compensation | 4,010 | 4,010 | |||||
Net income (loss) | 30,525 | 30,525 | |||||
Ending Balance at Feb. 02, 2019 | $ 213,795 | $ 437 | 121,635 | 91,723 | |||
Ending balance, shares at Feb. 02, 2019 | 43,672,418 | 43,672,418 | |||||
Adoption of ASU | ASU 2016-02 [Member] | [1] | $ 44 | 44 | ||||
Special cash dividend ($1.15 per share) | (50,154) | (50,154) | |||||
Vesting of restricted stock | $ 10 | (10) | |||||
Vesting of restricted stock, shares | 993,668 | ||||||
Shares withheld for net-share settlement of equity-based compensation | (1,407) | $ (3) | (1,404) | ||||
Shares withheld for net-share settlement of equity-based compensation, shares | (348,619) | ||||||
Forfeitable dividend | 115 | 115 | |||||
Forfeiture of restricted stock awards | $ (2) | 2 | |||||
Forfeiture of restricted stock awards, shares | (168,772) | ||||||
Common stock issued under employee stock purchase plan | 135 | $ 1 | 134 | ||||
Common stock issued under employee stock purchase plan, shares | 139,432 | ||||||
Equity-based compensation | 4,604 | 4,604 | |||||
Net income (loss) | (128,567) | (128,567) | |||||
Ending Balance at Feb. 01, 2020 | $ 38,565 | $ 443 | $ 125,076 | $ (86,954) | |||
Ending balance, shares at Feb. 01, 2020 | 44,288,127 | 44,288,127 | |||||
[1] | See Note 3 for additional detail regarding the adoption of new accounting standards. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' / Members' Equity (Parenthetical) - $ / shares | Feb. 01, 2020 | Mar. 06, 2019 |
Statement Of Stockholders Equity [Abstract] | ||
Dividend declared (in dollars per share) | $ 1.15 | $ 1.15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement Of Cash Flows [Abstract] | |||
Net income | $ (128,567) | $ 30,525 | $ 55,365 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 37,916 | 36,743 | 35,040 |
Impairment of goodwill and indefinite-lived intangible assets | 131,528 | ||
Impairment of long-lived assets | 2,325 | 2,164 | |
Gain on extinguishment of debt | (100) | ||
Loss on disposal of fixed assets | 151 | 128 | 586 |
Gain on liquidation of inventory | (1,274) | ||
Noncash amortization of deferred financing and debt discount costs | 1,756 | 1,602 | 2,570 |
Equity-based compensation | 4,604 | 4,010 | 782 |
Deferred rent incentives | (177) | (135) | 985 |
Deferred income taxes | (10,824) | (4,319) | (27,248) |
Changes in operating assets and liabilities | |||
Accounts receivable | (2,561) | 726 | (882) |
Inventories | 4,024 | 3,242 | (13,950) |
Prepaid expenses and other current assets | 2,517 | (7,639) | (2,607) |
Accounts payable | (11,337) | 471 | 15,322 |
Accrued expenses | 31 | (1,595) | 1,272 |
Operating lease assets and liabilities | 2,861 | ||
Other noncurrent asset and liabilities | (320) | 3,744 | 7,055 |
Net cash provided by operating activities | 32,653 | 67,503 | 76,354 |
Investing activities: | |||
Purchases of property and equipment | (18,222) | (24,710) | (38,372) |
Net cash used in investing activities | (18,222) | (24,710) | (38,372) |
Financing activities: | |||
Repayments on long-term debt | (7,799) | (2,799) | (27,699) |
Proceeds from employee stock purchases | 134 | 232 | |
Special dividend paid to shareholders | (50,154) | ||
Payments of withholding tax on net-share settlement of equity-based compensation plans | (1,403) | ||
Forfeitable dividend | 114 | ||
Receivable from related party | 2,227 | ||
Net cash used in financing activities | (59,108) | (2,567) | (25,472) |
Net change in cash | (44,677) | 40,226 | 12,510 |
Cash: | |||
Beginning of Period | 66,204 | 25,978 | 13,468 |
End of Period | 21,527 | 66,204 | 25,978 |
Supplemental cash flow information: | |||
Cash paid for interest | 18,107 | 17,996 | 16,390 |
Cash paid for taxes | 7,187 | 23,092 | 20,521 |
Noncash investing and financing activities: | |||
Capital expenditures financed with the ending balance in accounts payable and accrued expenses | $ 1,334 | $ 1,935 | $ 2,404 |
General
General | 12 Months Ended |
Feb. 01, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | 1. General J.Jill is a premier omnichannel retailer and nationally recognized women’s apparel brand committed to delighting customers with great wear-now product. The brand represents an easy, thoughtful and inspired style that reflects the confidence of remarkable women who live life with joy, passion and purpose. J.Jill offers a guiding customer experience through more than 280 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston. J.Jill, Inc. was formed on February 24, 2017, when the Company converted from a Delaware limited liability company named Jill Intermediate LLC (“Intermediate”) into a Delaware corporation named J.Jill, Inc. In conjunction with the conversion, all of Intermediate’s outstanding equity interests converted into 43,747,944 shares of common stock. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this conversion. Intermediate had one class of equity interests, all of which were held by JJill Holdings, Inc. (“Holdings”), its former direct parent company, and JJill Topco Holdings, LP (“Topco”), the direct parent company of Holdings. In conjunction with the Company’s conversion into a Delaware corporation, JJill Holdings and JJill Topco Holdings each received shares of common stock in proportion to the percentage of Intermediate’s equity interests held by them prior to the conversion. Following the Company’s conversion into a Delaware corporation, Holdings, the Company’s former direct parent, merged with and into J.Jill, Inc., and J.Jill, Inc. was the surviving entity to such merger (“Parent Merger”). The Company’s consolidated financial statements were retroactively restated to reflect the Parent Merger as of the earliest date that common control existed in the period in which the Parent Merger occurred. In connection with the conversion, J.Jill, Inc. continues to hold all assets of Intermediate and assumed all of its liabilities and obligations. J.Jill, Inc. is a holding company, and Jill Acquisition LLC, its wholly-owned subsidiary, remains the operating company for the business assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company uses a 52 to 53-week fiscal year ending on the Saturday 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 Years of 2019 and 2018 had 52-weeks of operations and Fiscal Year 2017 had 53-weeks of operations. Substantial Doubt about the Company’s Ability to Continue as a Going Concern In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements - Going Concern”, the Company’s management evaluated whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the financial statements’ issuance date. The following matters raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. The Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern. COVID-19 Pandemic: In December 2019, COVID-19 emerged and has subsequently spread worldwide. The World Health Organization declared COVID-19 a pandemic on March 11, 2020 resulting in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus. After close monitoring and taking into consideration the guidance from federal, state and local governments, in an effort to mitigate the spread of COVID-19, effective March 18, 2020, the Company closed all of its stores and its offices with employees working remotely where possible. Our distribution center and online business continue to operate; however, the Company continues to monitor developments, including government requirements and recommendations at the national, state, and local level to evaluate possible closure of our distribution center and extensions to all or part of our store closures. As a result, the Company’s revenues, results of operations and cash flows have been materially adversely impacted which will also result in a failure by us to comply with the financial covenants contained in our ABL Facility and Term Loan Agreements. substantial doubt about the Company’s ability to continue as In response to the COVID-19 pandemic, we are taking aggressive and prudent actions to reduce expenses and defer payment of accounts payables and inventory purchases to preserve cash on-hand. These actions include, but are not limited to: • temporary furlough of substantially all retail employees for the duration of store closures at their location and subject to reduced staffing for a phase-in period upon reopening; • base salary reductions for our senior leadership team and suspension of pay raise for corporate employees; • extension of payment terms for all accounts payable other than those necessary to support our ecommerce business; • withholding payment of approximately $12.0 million of rent at all of our retail locations, beginning in April 2020, subject to discussion with our landlords; • extended payment terms with merchandising vendors; • eliminated one of our catalogs and are considering implementing this as a permanent change; • limiting investments in our ecommerce business to necessary website and supporting functions; and • suspension of nearly all capital expenditures. Additionally, we borrowed $33.0 million under our ABL Facility in March 2020. We are seeking to amend our ABL Facility to provide for further incremental borrowings. On May 15, 2020, the Company began reopening its stores and as of the issuance date, approximately half of its stores have been reopened in accordance with local government guidelines. The Company expects to continue reopening stores in a phased approach as more states reopen for retail. There is significant uncertainty around the duration of these store closures and other business disruptions related to COVID-19, as well as its impact on the U.S. economy, consumer willingness to visit malls and shopping centers, and employee willingness to staff our stores as they continue to reopen. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include, but are not limited to, revenue recognition, including merchandise returns and accounting for gift card breakage; estimating the fair value of inventory and inventory reserves; impairment assessments of goodwill, intangible assets, and other long-lived assets; and equity-based compensation. As a result of the COVID-19 pandemic, the Company considered relevant impacts to its estimates related to merchandise returns reserve, estimating the fair value of inventory and inventory reserves; impairment assessments of goodwill, intangible assets, and other long-lived assets and there may be changes to those estimates in future periods. Actual results could differ from those estimates, and such differences could be material. Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Segment Reporting The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company’s operating segments consist of its retail and direct channels, which have been aggregated into one reportable segment. All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under this method, acquired assets, including separately identifiable intangible assets, and any assumed liabilities are recorded at their acquisition date estimated fair value. The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount resulting from the acquisition. Determining the fair value of assets acquired and liabilities assumed involves the use of significant estimates and assumptions. Accounts Receivable The Company’s accounts receivable relate primarily to payments due from banks for credit and debit transactions for approximately 2 to 5 days of sales. These receivables do not bear interest. Inventories Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or net realizable value, net of reserves. Cost is calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Company’s manufacturers plus duties, tariffs, inbound freight and commissions. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including past and projected sales performance and current inventory levels. As of February 1, 2020 and February 2, 2019, an inventory reserve of $3.8 million and $2.6 million has been recorded, respectively. The Company sells excess inventory in its stores and on-line at www.jjill.com. In limited cases, inventory liquidators are utilized. Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is recorded when goods are cleared for export on board the ship at the port of shipment. Property and Equipment Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the accompanying consolidated statements of operations and comprehensive income. Estimated useful lives of property and equipment asset categories are as follows: Furniture, fixtures and equipment 5-7 years Computer software and hardware 3-5 years Leasehold improvements Shorter of estimated useful life or lease term Capitalized Interest The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment. Long-lived Assets The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating or cash flow performance that demonstrates continuing losses associated with an asset or asset group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the market participant rate. The fair value measurement includes the fair value of the right of use asset and will not be written down below the asset’s fair value. Any impairment charge would be recognized within operating expenses. Goodwill and Indefinite-lived Intangible Assets 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. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business. At each fiscal year-end, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment initially using a qualitative approach (“step zero”) to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances that it is more likely than not that a reporting unit’s carrying value is greater than its fair value, then a quantitative analysis will be performed to determine if there is any impairment. The Company may also elect to initially perform a quantitative analysis instead of starting with step zero. The quantitative assessment requires comparing the fair value of a reporting unit to its carrying value, including goodwill. The Company estimates fair value using the income approach. The income approach uses a discounted cash flow model, which involves significant estimates and assumptions, including preparation of revenue and profitability growth forecasts, selection of a discount rate, and selection of a terminal year multiple. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and no further testing is required. If the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge is recognized for the amount in excess, not to exceed the total amount of goodwill allocated to that reporting unit. An impairment charge is recorded within the Company’s consolidated statement of operations and comprehensive income. At each year end, the Company also performs an impairment analysis of its indefinite-lived intangible assets. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trade name using the relief from royalty method. The most significant estimates and assumptions inherent in this approach are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs. Revenue Recognition Revenue is primarily derived from the sale of apparel and accessory merchandise through our retail channel and direct channel, which includes website and catalog phone orders. Revenue also includes shipping and handling fees collected from customers. Topic 606 requires entities to recognize revenue when control of the promised goods or services are transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Revenue from our retail channel is recognized at the time of sale and revenue from our direct channel is recognized upon shipment of merchandise to the customer. The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the time of sale, the Company records an estimated sales reserve for merchandise returns based on historical prior returns experience and expected future returns. The estimated sales reserve is recorded as a return asset (and corresponding adjustment to cost of goods sold) for the cost of inventory and a return liability for the amount to settle the return with a customer (and a corresponding adjustment to revenue). The return asset and return liability are recorded in prepaid expenses and other assets, and accrued expenses and other current liabilities, respectively, in the consolidated balance sheet. The Company collects and remits sales and use taxes in all states in which retail and direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue. The Company sells gift cards without expiration dates to customers. The Company does not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as a contract liability until the customer redeems the gift card or when the likelihood of redemption is remote. Based on historical experience, the Company estimates the value of outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and will not be escheated under statutory state unclaimed property laws. This gift card breakage is recognized as revenue over the time period established by the Company’s historical gift card redemption pattern. The Company recognizes revenues from shipments to customers before the shipping and handling activities occur and will accrue those related costs. Shipping and handling costs are recorded in selling, general and administrative expenses. Costs of Goods Sold The Company’s costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. Advertising Costs The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are capitalized as incurred and expensed when the catalog is mailed to the customer (the first time the advertising occurs). Advertising expenses were $32.6 million, $38.5 million, and $39.2 million for the Fiscal Years 2019, 2018, and 2017, respectively. The costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Other advertising costs are recorded as incurred. Other advertising costs recorded were $26.3 million, $23.8 million, and $20.9 million for the Fiscal Years 2019, 2018, and 2017, respectively. The costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Operating Leases The Company determines if an arrangement is a lease at inception. Lease agreements will typically exist with lease and non-lease components, which are generally accounted for separately. The Company recognizes operating lease liabilities equal to the present value of the lease payments and operating lease assets representing the right to use the underlying asset for the lease term. The lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments. The operating lease assets include any lease payments made prior to lease commencement and are reduced by any lease incentives. Under Topic 842, for any new leases entered into, the Company will assess if it is reasonably certain to exercise lease options to extend or terminate the lease for inclusion (or exclusion) in the lease term when the Company measures the lease liability. The depreciable life of any assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels. Variable rental payments are recognized in the consolidated statement of operations and comprehensive income in the period in which the obligation for those payments are incurred. If such variable operating leases arise that include incentives from landlords in the form of cash, the Company will record the full amount of the incentive when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable lease, including options to extend if they are reasonably certain to be exercised. The Company recognized those liabilities to be amortized within a year as a current liability and those greater than a year as a long-term liability. For purposes of recognizing these incentives and rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the lease asset to begin amortization, which is generally when the Company takes possession of the asset. Debt Issuance Costs The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying amount of the debt on the Company’s balance sheet. From time-to-time the Company could make prepayments on the long-term debt and a portion of the debt issuance costs associated with the prepayment would be accelerated and expensed at that time. Income Taxes The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax basis, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies. The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. Any interest or penalties incurred are recorded in the selling, general, and administrative expenses line item of the accompanying consolidated statements of operations and comprehensive income. The Company incurred immaterial amounts of interest expense and penalties related to income taxes for Fiscal Years 2019, 2018 and 2017. Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value in accordance with GAAP. 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 requires 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 asset or liability 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 liability. As of February 1, 2020 the Company had no assets or liabilities that were measured at fair value for reporting purposes on a recurring basis. The fair value of the Company’s debt, as measured through the level 2 measurements, was approximately $200.5 million and $242.2 million at February 1, 2020 and February 2, 2019, respectively. 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. Comprehensive Income Comprehensive income is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income. The Company’s management has determined that net income is the only component of the Company’s comprehensive income. Accordingly, there is no difference between net income and comprehensive income. Equity-based Compensation The Company accounts for equity-based compensation for employees and directors by recognizing the fair value of equity-based compensation as an expense in the calculation of net income, based on the grant-date fair value. The Company recognizes equity-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the equity-based awards is determined using the Black-Scholes option pricing model or the stock price on the date of grant. All of the equity-based awards granted by the Company during the Fiscal Years Earnings Per Share Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. There were no potentially dilutive securities outstanding during Fiscal Year 2019. There were 1.5 million and 1.6 million dilutive securities outstanding during the Fiscal Years 2018 and 2017, respectively. Credit Card Agreement The Company has an arrangement with a third party to provide a private label credit card to its customers through August 2023, and will automatically renew thereafter for successive two year terms. The Company does not bear the credit risk associated with the private label credit card at any point prior to the termination of the agreement, at which point the Company would be obligated to purchase the receivables. If the arrangement is terminated prior to September 7, 2021 and other criteria are met, the Company is obligated to pay a purchase price premium. The potential impact of the purchase obligation cannot be reasonably estimated, and therefore, has not been recorded. The Company receives royalty payments through its private label credit card agreement. The royalty payments are recognized as revenue when they are received. Royalty payments recognized were $5.6 million, $5.6 million, and $4.7 million for the Fiscal Years 2019, 2018 and 2017, respectively. The Company also receives reimbursements for costs of marketing programs related to the private label credit card, which are recorded as revenue as earned and the costs incurred are recorded as operating expenses in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Reimbursements for costs of marketing programs of $1.9 million, $2.4 million and $1.3 million were recognized in revenue in Fiscal Years 2019, 2018 and 2017, respectively. The credit card agreement provides a signing bonus to the Company, which is recognized into revenue over the life of the agreement. Employee Benefit Plan The Company has a 401(k) retirement plan under third-party administration covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company may, at its discretion, make elective contributions of up to 50% of the first 6% of the gross salary of the employee, which vests over a five-year period. Discretionary contributions made by the Company for the Fiscal Years 2019, 2018 and 2017 were $1.5 million, $1.5 million, and $1.1 million, respectively. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for doubtful accounts is necessary. As of February 1, 2020 and February 2, 2019, the Company determined that no allowance for doubtful accounts was necessary. |
Accounting Standards
Accounting Standards | 12 Months Ended |
Feb. 01, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Accounting Standards | 3. Accounting Standards Recently Adopted Accounting Standards In July 2018, the FASB issued ASU 2018-09 – Codification Improvements , which facilitates amendments to a variety of topics to clarify, correct errors in, or make minor improvements to the accounting standards codification. The effective date of the standard is dependent on the facts and circumstances of each amendment. Some amendments do not require transition guidance and will be effective upon the issuance of this standard. The standard was adopted as of February 3, 2019, and In June 2018, the FASB issued ASU 2018-07 – Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting The Company adopted ASU 2016-02- Leases The Company applied a portfolio approach to effectively account for the operating lease liabilities and operating lease assets; the Company did not have financing leases. The Company excludes leases with an initial term of 12 months or less from the application of Topic 842. The Company did not elect the hindsight practical expedient; therefore, upon adoption, the Company used the remaining lease term of the current lease, option or extension. Adoption of the new standard resulted in the recording of operating lease assets and operating lease liabilities of $223.3 million and $250.5 million, respectively, on the Company’s consolidated balance sheet as of February 3, 2019. The difference between the approximate value of the operating lease assets and liabilities is attributable to deferred rent, deferred rent incentives, leasehold interests and prepaid rent. There was no material impact on the Company’s consolidated statement of operations and comprehensive income or consolidated statements of cash flows. The Company’s comparative periods continue to be presented and disclosed in accordance with legacy guidance in Topic 840. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) Revenue Recognition The Company adopted ASU 2014-09 and related amendments, collectively known as Accounting Standards Codification 606 (“Topic 606”) as of February 4, 2018 on a modified retrospective basis applied to contracts which were not completed as of February 4, 2018. As part of the adoption of Topic 606, Topic 340-20 – Capitalized Advertising Costs Advertising Costs Recently Issued Accounting Pronouncements In November 2018, the FASB issued ASU 2018-18 – Collaborative Arrangements In September 2018, the FASB issued ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement |
Revenues
Revenues | 12 Months Ended |
Feb. 01, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 4. Revenues Disaggregation of Revenue The Company sells its products directly to consumers and the Company earns royalties and other reimbursements under its credit card agreement. The following table presents revenues disaggregated by revenue source (in thousands): For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 (1) Retail $ 389,521 $ 412,640 $ 397,353 Direct 301,824 293,622 300,792 Net revenues $ 691,345 $ 706,262 $ 698,145 (1) As previously noted, prior period amounts have not been adjusted under the modified retrospective method. 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): February 1, 2020 February 2, 2019 Contract liabilities: Signing bonus $ 506 $ 647 Unredeemed gift cards 7,264 7,081 Total contract liabilities (1) $ 7,770 $ 7,728 (1) Included in accrued expenses and other current liabilities on the Company's consolidated balance sheet. The short term portion of the signing bonus is included in accrued expenses on the Company’s consolidated balance sheet. For the Fiscal Years 2019, 2018, 2017, the Company recognized approximately $12.8 million, $12.4 million and $12.2 million of revenue related to gift card redemptions and breakage, 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 during the period. Performance Obligations The Company has a remaining performance obligation of $0.5 million for a signing bonus related to the private label credit card agreement. The Company will recognize revenue over the remaining life of the contract as follows (in thousands): Fiscal Year 2020 Fiscal Year 2021 Thereafter Signing bonus $ 141 $ 141 $ 224 This disclosure does not include revenue related to performance obligations from unredeemed gift cards, as substantially all gift cards are redeemed in the first year of issuance. Practical Expedients and Policy Elections The Company excludes from its transaction price 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. Other Income The Company filed an insurance claim as a result of a cargo vessel fire on or about January 8, 2019, where contents of two containers carried J.Jill inventory. In July 2019, it was determined that the inventory onboard the cargo vessel was nonsalable and the insurance claim was settled for $3.3 million. The Company recorded a gain of $2.4 million on insurance proceeds in selling, general and administrative expenses in the consolidated statement of operations and comprehensive income (loss) for the fiscal year ended February 1, 2020. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Feb. 01, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include the following (in thousands): February 1, 2020 February 2, 2019 Prepaid rent $ 2,494 $ 5,947 Prepaid catalog costs 2,590 3,032 Prepaid store supplies 2,102 1,931 Returns reserve asset 5,134 4,295 Income tax receivable 3,298 3,923 Other prepaid expenses 4,477 5,070 Other current assets 2,161 3,536 Total prepaid expenses and other current assets $ 22,256 $ 27,734 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Goodwill The balance of goodwill was $77.6 million at February 1, 2020 and $197.0 million at February 2, 2019. During the second quarter of Fiscal Year 2019, the Company reduced comparable sales outlook that led to a reduced full year forecast of earnings for Fiscal Year 2019. The Company concluded that these factors, as well as the decrease in stock price represented indicators of impairment and required the Company to test goodwill and indefinite-lived intangible assets for impairment during the second quarter of Fiscal Year 2019 (the “Q2 Impairment Test”). The Company performed the Q2 Impairment Test using a quantitative approach with the assistance of an independent valuation firm. The Q2 Impairment Test was performed using the income approach (or discounted cash flows method) for goodwill and the relief-from-royalty method for indefinite-lived intangible assets. The estimated fair values of goodwill and indefinite-lived intangible asset were below carrying values resulting in an $88.4 million impairment of goodwill and a $7.0 million impairment of the Company’s tradename (indefinite-lived intangible asset). In addition, during the fourth quarter of Fiscal Year 2019, the Company updated sales guidance, the CEO departed and there was a decline in stock price. The Company noted that all these occurrences were an indication of a triggering event and resulted in the Company testing goodwill and indefinite lived intangible assets for impairment (the “Q4 Impairment Test”). The Company performed the Q4 Impairment Test using a quantitative approach with the assistance of an independent valuation firm. The Q4 Impairment Test was performed using the income approach (or discounted cash flows method) for goodwill and the relief-from-royalty method for indefinite-lived intangible assets. The estimated fair values of goodwill and indefinite-lived intangible asset were below the updated carrying values resulting in a $31.0 million impairment of goodwill and a $5.1 million impairment of the Company’s tradename (indefinite-lived intangible asset). Finally, the Company performed their annual impairment assessment (the “Annual Impairment Test”) after the Q4 Impairment Test was completed. The Company chose to forego the step zero impairment analysis and instead performed a quantitative impairment test . While the results of the Annual Impairment Test did not indicate any additional impairment, the Company is at risk of future impairment in Fiscal Year 2020 as a result of triggering events. Additionally, due to the impairments recorded during the current year, no material amount of cushion exists between the fair values and respective carrying values of the reporting units and tradename. As such, a change in forecasted discounted cash flows driven by changes in relevant assumptions, may result in further impairment charges. During Fiscal Year 2018, the Company performed a step zero impairment analysis and determined goodwill and indefinite-lived intangibles were not impaired based on a qualitative analysis. Intangible Assets A summary of intangible assets as of February 1, 2020 and February 2, 2019 is as follows (in thousands): Weighted Average February 1, 2020 February 2, 2019 Useful Life (Years) Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Indefinite-lived: Trade name (1) N/A $ 46,000 $ — $ 46,000 $ 58,100 $ — $ 58,100 Definite-lived: Customer relationships 13.2 134,200 (67,386 ) 66,814 134,200 (56,123 ) 78,077 Total intangible assets $ 180,200 $ (67,386 ) $ 112,814 $ 192,300 $ (56,123 ) $ 136,177 (1) The gross value of the Company's trade name was impaired $12.1 million in FY 2019 The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows: Asset Amortization Method Estimated Useful Life Customer lists Pattern of economic benefit 9 - 16 years Total amortization expense for these amortizable intangible assets was $11.3 million, $12.8 million, and $14.5 million for the Fiscal Years 2019, 2018, and 2017, respectively. The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands): Fiscal Year Estimated Amortization Expense 2020 $ 10,015 2021 9,005 2022 8,094 2023 7,373 2024 5,312 Thereafter 27,015 Total $ 66,814 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment Property and equipment at February 1, 2020 and February 2, 2019 consist of the following (in thousands): February 1, 2020 February 2, 2019 Leasehold improvements $ 107,853 $ 98,117 Furniture, fixtures and equipment 50,880 47,164 Computer hardware and software 51,996 43,668 Total property and equipment, gross 210,729 188,949 Accumulated depreciation (106,543 ) (81,192 ) 104,186 107,757 Construction in progress 3,459 10,287 Property and equipment, net $ 107,645 $ 118,044 Construction in progress is primarily comprised of leasehold improvements, furniture, fixtures and equipment related to unopened retail stores and costs incurred related to the implementation of certain computer software. Capitalized software, subject to amortization, included in property and equipment at February 1, 2020 and February 2, 2019 had a cost basis of approximately $38.7 million and $33.2 million, respectively, and accumulated amortization of $20.6 million and $14.3 million, respectively. Total depreciation expense was $26.6 million, $24.4 million, and $21.1 million, for the Fiscal Years 2019, 2018, and 2017, respectively. During the Fiscal Years 2019 and 2017, the Company recorded impairment charges of $2.3 million and $2.2 million, respectively, associated with the assets of underperforming retail locations. The impairment charge was calculated using a discounted cash flow model and was recorded in selling, general and administrative in the Company’s consolidated statement of operations and comprehensive income. During the Fiscal Year 2018, the Company did not record any impairment charges associated with property and equipment. The Company capitalized interest in connection with construction in progress of $0.3 million, $0.4 million and $0.6 million for the Fiscal Years 2019, 2018, 2017, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 01, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities include the following (in thousands): February 1, 2020 February 2, 2019 Accrued payroll and benefits $ 4,034 $ 3,599 Accrued returns reserve 12,822 10,849 Gift certificates redeemable 7,265 7,081 Accrued professional fees 1,673 2,901 Taxes, other than income taxes 2,594 3,132 Accrued occupancy 1,136 3,995 Other accrued employee costs 2,219 4,510 Other 10,969 9,239 Total accrued expenses and other current liabilities $ 42,712 $ 45,306 The following table reflects the changes in the accrued returns reserve for the Fiscal Years 2019, 2018, and 2017 (in thousands): Accrued returns reserve Beginning of Period Charged to Expenses Deductions End of Period Fiscal Year Ended Year Ended February 3, 2018 $ 6,883 $ 131,322 $ (130,542 ) 7,663 Fiscal Year Ended Year Ended February 2, 2019 7,663 134,887 (131,700 ) 10,849 Fiscal Year Ended Year Ended February 1, 2020 10,849 138,355 (136,382 ) 12,822 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 9. Restructuring Costs In July 2019, the Company implemented a restructuring plan (the “2019 Restructuring Plan”) focused on cost reduction initiatives designed to execute against long-term strategies. The 2019 Restructuring Plan included headcount reductions primarily at the Company’s corporate headquarters in Quincy, Massachusetts and at the facility in Tilton, New Hampshire. As a result of the 2019 Restructuring Plan, the Company recorded $1.6 million of restructuring costs in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. All restructuring costs have been incurred in the second quarter of Fiscal Year 2019 and payments are anticipated to be complete in the fourth quarter of Fiscal Year 2020, ending on January 30, 2021. The following table summarizes the activity of the restructuring costs discussed above and related accruals recorded in accrued other and other current liabilities on the consolidated balance sheet (in thousands) : February 3, 2019 Charges Incurred Cash Payments Adjustments February 1, 2020 Employee separation costs $ — $ 1,402 $ 1,186 $ — $ 216 Other — 195 156 — 39 Total restructuring costs $ — $ 1,597 $ 1,342 $ — $ 255 |
Debt
Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The components of the Company’s outstanding Term Loan were as follows (in thousands): February 1, 2020 February 2, 2019 Term loan $ 237,579 $ 245,378 Discount on debt and debt issuance costs (3,580 ) (5,115 ) Less: Current portion (2,799 ) (2,799 ) Net long-term debt $ 231,200 $ 237,464 On January 31, 2020, the Company made a voluntary prepayment of $5.0 million on the Term Loan. The Company recorded interest expense of $20.1 million, $19.9 million and $19.3 million in the Fiscal Years 2019, 2018, and 2017, respectively. Term Loan Credit Agreement On May 8, 2015, the Company entered into a Term Loan Agreement in conjunction with the Acquisition. The seven-year Term Loan Agreement provides for borrowings of $250.0 million. The Company can elect, at its option, the applicable interest rate for borrowings under the Term Loan Agreement using a LIBOR or Base Rate variable interest rate plus an applicable margin. LIBOR loans under the Term Loan Agreement accrue interest at a rate equal to LIBOR plus 5.00%, with a minimum LIBOR per annum of 1.00%. Base Rate loans under the Term Loan Agreement accrue interest at a rate equal to (i) the greatest of (a) the financial institution’s prime rate, (b) the Federal Funds Effective Rate plus 0.50%, or (c) LIBOR, with a minimum LIBOR of 1.00% plus 1.00%, and (d) 2.00%. On May 27, 2016, the Company entered into an agreement to amend (the “Term Loan Amendment”) our Term Loan Agreement to borrow an additional $40.0 million in additional loans to permit certain dividends and to make certain adjustments to the financial covenant. The other terms and conditions of the Term Loan remained substantially unchanged. Current borrowings under the Term Loan Agreement accrue interest at a rate equal to LIBOR plus 5.00%, with a minimum LIBOR per annum of 1.00%, and are payable on a quarterly basis. The rate per annum was 6.93 - 7.75% in Fiscal Years 2019, 6.78 – 7.53% in Fiscal Year 2018 and 6.04 - 6.78% in Fiscal Year 2017. Repayments of $0.7 million are payable quarterly, beginning on October 31, 2015 and continuing until maturity on May 8, 2022, when the remaining outstanding principal balance of $231.3 million is due. The Company incurred $11.3 million of debt issuance costs in connection with the Term Loan Agreement and Term Loan Amendment. These fees are presented as a direct reduction from the carrying amount of the long-term debt on the consolidated balance sheet. During the Fiscal Years 2019, 2018 and 2017, $1.5 million, $1.4 million and $2.2 million of the debt issuance cost was amortized to interest expense, respectively. Borrowings under the Term Loan Agreement are collateralized by all of the assets of the Company. In connection with the Term Loan Agreement, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements. Affirmative covenants include providing timely quarterly and annual financial statements and prompt notification of the occurrence of any event of default or any other event, change or circumstance that has had, or could reasonably be expected to have, a material adverse effect as defined in the Term Loan Agreement. In addition, there are negative covenants, including certain restrictions on the Company’s ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, undergo a change in control, make advances, investments and loans, or modify its organizational documents. As of February 1, 2020 and February 2, 2019, the Company was in compliance with all financial covenants. Asset-Based Revolving Credit Agreement On May 8, 2015, the Company entered into a five-year secured $40.0 million asset-based revolving credit facility agreement (the “ABL Facility”). The ABL Facility had an initial maturity of May 8, 2020. On June 12, 2019 this ABL Facility was amended to extend the term date to May 8, 2023. Under the terms of this agreement, the ABL Facility provides for borrowings up to (i) 90% of eligible credit card receivables, plus (ii) 85% of eligible accounts receivable, plus (iii) the lesser of (a) 100% of the value of eligible inventory at such time and (b) 90% of the net orderly liquidation value of eligible inventory at such time, plus (iv) the lesser of (a) 100% of the value of eligible in-transit inventory at such time, (b) 90% of the net orderly liquidation value of eligible in-transit inventory at such time and (c) the in-transit maximum amount (the in-transit maximum amount is not to exceed $12.5 million during the 1 st rd nd th The ABL Facility consists of revolving loans and swing line loans. Borrowings classified as revolving loans under the ABL Facility may be maintained as either LIBOR or Base Rate loans, each of which has a variable interest rate plus an applicable margin. Borrowings classified as swing line loans under the ABL Facility are Base Rate loans. LIBOR loans under the ABL Facility accrue interest at a rate equal to LIBOR plus a spread of 2.00% from May 8, 2015 to August 31, 2015, and thereafter ranging from 1.50% to 1.75%, depending on borrowing amounts. Base Rate loans under the ABL Facility accrue interest at a rate equal to (i) the greatest of (a) the financial institution’s prime rate, (b) the overnight Federal Funds Effective Rate plus 0.50%, (c) LIBOR plus 1.00%, and (d) 2.00%, plus (ii) a spread of 1.00% from May 8, 2015 to August 31, 2015, and thereafter ranging from 0.50% to 0.75%, depending on borrowing amounts. Interest on each LIBOR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan is payable in arrears on the last business day of April, July, October and January. For both LIBOR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at the election of the Company, or 12 months with the consent of all lenders. The ABL Facility also requires the quarterly payment, in arrears, of a commitment fee. The commitment fee is payable in an amount equal to 0.375% from May 8, 2015 to July 1, 2016, and thereafter at an amount equal to (i) 0.375% for each calendar quarter during which historical excess availability is greater than 50% of availability, and (ii) 0.25% for each calendar quarter during which historical excess availability is less than or equal to 50% of availability. During the fiscal year ended February 1, 2020 and February 2, 2019, there were no amounts drawn or outstanding under the ABL Facility. Based on the terms of the agreement and the increase for the letters of credit, the Company’s available borrowing capacity under the ABL Facility as of February 1, 2020 and February 2, 2019 was $38.3 million and $38.2 million, respectively. The Company incurred $1.1 million of debt issuance costs in connection with the related ABL Facility, which were capitalized and are included in other assets on the consolidated balance sheet. In the Fiscal Years 2019, 2018, and 2017, $0.2 million of the debt issuance cost were amortized to interest expense, in each of the respective periods. Borrowings under the ABL Facility are collateralized by a first lien on accounts receivable and inventory. In connection with the ABL Facility, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements. Affirmative covenants include providing timely quarterly and annual financial statements and prompt notification of the occurrence of any event of default or any other event, change or circumstance that has had, or could reasonably be expected to have, a material adverse effect as defined in the ABL Facility. In addition, there are negative covenants, including certain restrictions on the Company’s ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, undergo a change in control, make advances, investments and loans or modify its organizational documents. As of February 1, 2020 and February 2, 2019, the Company was in compliance with all financial covenants. The Term Loan Agreement and the ABL Facility contain provisions on the occurrence of a default event. In the event of a payment default that is not cured within five business days or is not waived, or a covenant default that is not cured within 30 business days or is not waived, the Company’s obligations under these credit facilities may be accelerated. In addition, a 2.00% interest surcharge will be imposed during events of default. Letters of Credit As of February 1, 2020 and February 2, 2019, there were outstanding letters of credit of $1.7 million and $1.8 million, respectively, which reduced the availability under the ABL Facility. As of February 1, 2020, the maximum commitment for letters of credit was $10.0 million. Letters of credit accrue interest at a rate equal to revolving loans maintained as Base Rate loans under the ABL facility. In addition, a 2.00% interest surcharge will be imposed during events of default. The Company primarily used letters of credit to secure payment of workers’ compensation claims. Letters of credit are generally obtained for a one-year term and automatically renew annually, and would only be drawn upon if the Company fails to comply with its contractual obligations. Payments of Debt Obligations Due by Period As of February 1, 2020, minimum future principal amounts payable under the Company’s Term Loan Agreement are as follows (in thousands): Fiscal Year 2020 $ 2,799 2021 2,799 2022 231,981 2023 — 2024 — Thereafter — Total $ 237,579 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, financial condition, operating results or cash flows. We establish reserves for specific legal matters when we determine that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Concentration Risk An adverse change in the Company’s relationships with its key suppliers, or loss of the supply of one of the Company’s key products for any reason, could have a material effect on the business and results of operations of the Company. Two suppliers accounted for approximately 21.4% of the Company’s purchases during Fiscal Year 2019. Other Commitments The Company enters into other cancelable and noncancelable commitments. Typically, these commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Company’s merchandise vendors are made approximately six months in advance of the planned receipt date. |
Operating Leases
Operating Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Operating Leases | 12. Operating Leases As of February 1, 2020, the Company leased certain retail stores, a distribution center, and office space. As of that same date, the Company did not have any financing leases and no operating leases contained any material residual value guarantees or material restrictive covenants. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels and month-to-month leases. Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from one to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years. The exercise of lease renewal options is at the Company’s sole discretion. As of February 1, 2020, the Company included options to renew that are reasonably certain to be exercised in the operating lease assets and liabilities. As described in Note 3, the Company adopted Topic 842 as of February 3, 2019. Under this guidance the Company did not record any deferred lease liabilities as of February 1, 2020. The Company maintained a tenant incentive liability of $1.2 million as of February 1, 2020, related to certain variable retail leases. Under legacy guidance, Topic 840, the Company recorded a deferred lease liability of $11.9 million and maintained a tenant improvement incentive liability of $19.1 million as of February 2, 2019. The components of lease expense were as follows (in thousands): Lease Cost Classification For the Fiscal Year Ended February 1, 2020 Operating lease cost SG&A Expenses $ 47,482 Variable lease cost SG&A Expenses 3,434 Total lease cost $ 50,916 For the fiscal year ended February 1, 2020, total common area maintenance expense was $14.4 million. For the fiscal year ended February 2, 2019, total rental expense was $46.5 million, and common area maintenance expense was $14.1 million, exclusive of contingent rental expense recorded of $2.2 million. The Company used an incremental borrowing rate on February 3, 2019, for operating leases that commenced prior to that date. The incremental borrowing rate is estimated based upon (1) the financial condition and credit rating of the Company and its peers, (2) the term of the lease, (3) the nature of the underlying asset, and (4) the relative economic environment. For the fiscal year ended February 1, 2020, operating lease liabilities arising from obtaining operating lease assets were $21.0 million. For the fiscal year ended February 1, 2020, the total cash paid for amounts included in the measurement of operating lease liabilities was $48.0 million. Lease Term and Discount Rate February 1, 2020 Weighted-average remaining lease term (in years) Operating leases 7.2 Weighted-average discount rate Operating leases 6.5 % Maturities of lease liabilities as of February 1, 2020 were as follows (in thousands): Fiscal Year Operating Leases (1) 2020 $ 44,688 2021 47,009 2022 42,857 2023 39,760 2024 34,998 Thereafter 97,894 Less: Imputed interest 64,531 Present value of lease liabilities $ 242,675 (1) There were no operating leases with legally binding minimum lease payments for leases signed but for which the Company has not taken possession. Under Topic 840, future minimum rental payments required under all non-cancellable operating lease obligations as of February 2, 2019 were as follows (in thousands): Fiscal Year 2019 $ 49,399 2020 46,512 2021 43,872 2022 39,369 2023 36,459 Thereafter 110,376 Total $ 325,987 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The (benefit) provision for income taxes for the Fiscal Years 2019, 2018, and 2017 consists of the following (in thousands): For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 Current U.S. Federal $ 5,636 $ 11,634 $ 17,510 State and local 2,165 4,334 4,299 Total current 7,801 15,968 21,809 Deferred tax benefit U.S. Federal (8,681 ) (3,513 ) (28,374 ) State and local (2,142 ) (806 ) 1,126 Total deferred tax benefit (10,823 ) (4,319 ) (27,248 ) Total income tax provision (benefit) $ (3,022 ) $ 11,649 $ (5,439 ) A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows for the periods presented: For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 Federal statutory income tax rate 21.0 % 21.0 % 33.8 % State income taxes, net of federal tax effect 0.3 % 6.3 % 4.7 % Goodwill impairment (19.1 )% 0.0 % 0.0 % Tax rate changes 0.0 % 0.0 % (48.3 )% Acquisition-related costs 0.0 % 0.0 % 1.2 % Nondeductible equity-based compensation expense 0.1 % 0.3 % 0.2 % Charitable contributions 0.1 % (0.6 )% (1.7 )% Tax return to provision adjustments 0.0 % 0.1 % (1.2 )% Other (0.1 )% 0.5 % 0.4 % Effective tax rate 2.3 % 27.6 % (10.9 )% The components of deferred tax assets (liabilities) were as follows (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets Accrued expenses $ 5,384 $ 6,755 Start-up costs 618 681 Lease liabilities 64,068 - Total deferred tax assets 70,070 7,436 Deferred tax liabilities Inventory (2,496 ) (1,921 ) Lease assets (54,721 ) - Fixed assets (15,341 ) (13,413 ) Intangible assets (27,826 ) (33,137 ) Prepaid expenses (720 ) (807 ) Total deferred tax liabilities (101,104 ) (49,278 ) Net deferred tax liabilities $ (31,034 ) $ (41,842 ) On December 22, 2017, the U.S. Tax Cuts and Jobs Act (“TCJA”) legislation was signed. Pursuant to the enactment of the aforementioned legislation, the Company re-measured its existing deferred tax assets and liabilities based on a 21% tax rate; the current rate at which they are expected to reverse in the future. Also in December 2017, the Securities and Exchange Commission Income Tax Accounting Implications of the Tax Cuts and Jobs Act The Company had no federal or state tax credit carryforwards as of February 1, 2020 and February 2, 2019 and had no federal and an immaterial amount of state net operating loss carryforwards for the same respective periods. The Company has considered the need for a valuation allowance based on the more likely than not criterion. In determining the need for a valuation allowance, management makes assumptions and applies judgment, including forecasting future earnings and considering the reversals of existing deferred tax liabilities. Based on this analysis, management determined that no valuation allowance was required. The Company performed an analysis of its current and historical tax positions and determined that no material uncertain tax positions exist. Therefore, there is no liability for uncertain tax positions as of February 1, 2020 and February 2, 2019. The Company’s income tax returns are periodically examined by the Internal Revenue Service (the “IRS”). In prior years, the IRS completed an exam of the 2015 Successor period. On December 12, 2017, at the conclusion of the examination, the Company received a Revenue Agent’s Report, proposing an increase to our U.S. taxable income which resulted in an additional federal tax payment of $1.1 million, subject to interest. The federal tax payment was offset by a deferred tax asset. The Company agreed with the proposed adjustments and settled through payment of the assessment on January 31, 2018. The IRS also completed an examination of the Fiscal Year 2013 income tax return, without adjustment. For federal and state income tax purposes, the Company’s tax years remain open under statute from Fiscal Year 2016 to the present. J.Jill, Inc. is the parent entity required to file the consolidated income tax return for federal purposes and several state jurisdictions, which include subsidiary entities, Jill Acquisition LLC and J.Jill Gift Card Solutions, Inc. The Company has allocated its share of the parent entity’s federal and combined state income tax accrual, or benefit, in accordance with an intercompany tax allocation policy, which is based on the separate return method. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. Earnings Per Share The following table summarizes the computation of basic and diluted net income per common share for the Fiscal Years 2019, 2018, and 2017 (in thousands, except share and per share data): For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 Numerator Net income attributable to common shareholders: $ (128,567 ) $ 30,525 $ 55,365 Denominator Weighted average number of common shares outstanding, basic: 43,749,324 42,771,316 41,926,157 Dilutive effect of stock options and restricted shares: — 1,468,435 1,645,589 Weighted average number of common shares outstanding, diluted: 43,749,324 44,239,751 43,571,746 Net income per common share attributable to common shareholders, basic: $ (2.94 ) $ 0.71 $ 1.32 Net income per common share attributable to common shareholders, diluted: $ (2.94 ) $ 0.69 $ 1.27 The weighted average common shares for the diluted earnings per share calculation exclude the impact of outstanding equity awards 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. Such awards are excluded because they would have an anti-dilutive effect. There were 3,025,275 and 922,425 and 318,875 such awards excluded for the Fiscal Years 2019, 2018 and 2017, respectively. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 15. Equity-Based Compensation On May 8, 2015, Topco established an Incentive Equity Plan (the “Plan”), which allows Topco to grant Topco Class A Common Interests (“Common Interests”) to certain directors, senior executives and key employees of the Company. The Plan is administered by Topco’s board of directors, along with input from the Company’s Chief Executive Officer. Grant date fair value, vesting and any other restrictions are determined at the discretion of Topco’s board of directors. Common Interests granted to employees of the Company are classified as equity awards and are generally subject to a five-year vesting period, with either a monthly or annual cliff vest. The Plan also contains a fair value repurchase feature, allowing Topco to repurchase vested Common Interests upon termination of employment. The Common Interests contain provisions for accelerated vesting upon an approved sale of the Partnership or the termination of employment. If termination of employment is without cause, as defined in the Grant Agreement, all then-unvested units are forfeited and vested interests are subject to repurchase. If termination of employment is for cause, as defined in the Grant Agreement, all vested and unvested units will be forfeited. The Plan allowed Topco to grant up to 32,683,677 of its Class A Common Interests. As of February 3, 2018 During Fiscal Year 2017, at the time of the IPO, the total issued unvested Common Interests under the Plan were converted to 2,385,001 restricted share awards (“RSAs”) under the Plan. The RSA terms are the same as the Common Interests. During Fiscal Year 2019, there were 168,772 RSAs forfeited and there were no repurchases. During Fiscal Year 2018, there were 142,542 RSAs forfeited and there were no repurchases. There were no repurchased or forfeited RSAs during Fiscal Year 2017. In conjunction with the IPO, on March 9, 2017, the Company established the J.Jill, Inc. Omnibus Equity Incentive Plan (the “2017 Plan”), which reserves common stock for issuance upon exercise of options, or in respect of granted awards. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”). The Committee has the authority to determine the type, size and terms and conditions of awards to be granted and to grant such awards. During Fiscal Year 2017, the Committee granted restricted stock units (“RSUs”) under the 2017 Plan, which generally vest one year from the grant date. During Fiscal Year 2018, the Committee granted RSUs under the 2017 Plan, which vest 25% each year, over four years from the grant date. 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. The fair market value of RSUs is determined based on the market price of the Company’s shares on the date of the grant. During Fiscal Year 2019, the Committee approved an employment inducement award granting 302,644 RSUs. During Fiscal Year 2018, the Committee approved an employment inducement award granting 835,040 RSUs and 796,870 non-qualified stock options. The RSUs and non-qualified stock options vest 25% each year over four years from the grant date. The RSUs and non-qualified stock options follow the terms under the 2017 Plan. The following table summarizes restricted stock activity during Fiscal Year 2019, inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Unvested units outstanding at February 2, 2019 2,883,395 $ 3.21 Granted 2,431,479 4.18 Vested (1,238,838 ) 4.08 Forfeited (1,630,677 ) 4.57 Unvested units outstanding at February 1, 2020 2,445,359 $ 2.55 As of February 1, 2020, there was $6.2 million of total unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over a weighted-average service period of 2.5 years. The weighted-average grant date fair value per share of restricted stock granted during Fiscal Years 2019, 2018, and 2017, was $4.18, $4.79, and $12.63, respectively. The total fair value of restricted stock vested during Fiscal Years 2019, 2018, and 2017 was $5.1 million, $0.9 million, and $0.5 million, respectively. The 2017 Plan has 4,567,264 shares of common stock reserved for issuance to awards granted by the Committee. As of February 1, 2020, there were an aggregate of 1,874,981 shares authorized and available for future issuance. During Fiscal Year 2017, the Committee granted stock options under the 2017 Plan. Stock options are granted to purchase ordinary shares at prices as determined by the Committee, but in no event shall the exercise price be less than the fair market value of the common stock at the time of grant. Options generally vest in equal installments over a four-year period. Options expire not more than 10 years from the date of grant. The grant date fair value of options is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are recorded as incurred. The following table summarizes stock option activity during Fiscal Year 2019, inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms Aggregate- Intrinsic Value (1) (years) (thousands) Options outstanding at February 3, 2018 265,116 $ 6.05 $ 13.26 $ — $ — Granted 796,870 2.20 4.90 — — Exercised — — — — — Forfeited (12,435 ) 6.03 13.12 — — Options outstanding at February 2, 2019 1,049,551 $ 3.13 $ 6.91 9.0 $ 749.1 Granted — — — — — Exercised — — — — — Forfeited (945,097 ) 2.81 5.08 — — Options outstanding at February 1, 2020 104,454 $ 6.03 $ 11.97 7.3 $ — Options exercisable at February 1, 2020 52,227 $ 6.03 $ 11.97 7.3 $ — (1) The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. As of February 1, 2020, there was $0.2 million of unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of 1.3 years. There were no stock options granted during Fiscal Year 2019. The weighted-average grant date fair value per share of stock options granted during Fiscal Years 2018 and 2017 was $2.20 and $6.05, respectively. The Company historically has been a private company and lacks certain company-specific historical and implied volatility information. Therefore, it estimates its expected share volatility based on the historical volatility of a publicly traded group of peer companies. Due to the lack of relevant historical data, the simplified approach was used to determine the expected term of the options. The risk-free rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield for options granted in Fiscal Year 2018 was based on the fact that the Company had not paid any cash dividends as of February 2, 2019. The fair values of options are estimated using the Black-Scholes option-pricing model with the following assumptions: February 2, 2019 Risk-free rate 2.14% Expected term (in years) 6.25 Expected volatility 41.81% Expected dividend yield 0.00% The Company established an Employee Stock Purchase Plan (the “Purchase Plan”) during Fiscal Year 2017, under which a maximum of 200,000 shares of common stock may be purchased by eligible employees as defined by the Purchase Plan. As of February 1, 2020, there were 11,724 shares authorized and available for future issuance under the Purchase Plan. The Purchase Plan provides for one “purchase period” each year, commencing on January 1 of each year and continuing through December 31. Shares are purchased through an accumulation of payroll deductions (no more than 10% of compensation, as defined) for the number of whole shares determined by dividing the balance in the employee’s account on the last day of the purchase period by the purchase price per share for the stock determined under the Purchase Plan. The purchase price for shares is the lower of 85% of the fair market value of the common stock at the beginning of the purchase period, or 85% of such value at the end of the purchase period. The fair value of shares purchased under the Purchase Plan are estimated using the Black-Scholes option-pricing model with the following assumptions: February 1, 2020 February 2, 2019 Risk-free rate 1.59% 2.63% Expected term (in years) 1.00 1.00 Expected volatility 45.11% 42.54% Expected dividend yield 0.00% 0.00% The weighted average grant date fair value of the one-year option inherent in the Purchase Plan was approximately $0.38 and $1.74 during the Fiscal Years 2019 and 2018, respectively. During Fiscal Year 2019, the Company recognized $0.1 million of proceeds from 139,432 purchases of common stock through the Purchase Plan. Equity-based compensation expense for all award types of $4.6 million, $4.0 million, and $0.8 million was recorded as a selling, general and administrative expense in the consolidated statement of operations and comprehensive income during the Fiscal Years 2019, 2018, and 2017, respectively. Special Dividend On March 6, 2019, the Company’s Board of Directors declared a special cash dividend (the “Special Dividend”) of $1.15 per share payable to shareholders of record as of March 19, 2019, of which $50.2 million was paid on April 1, 2019 to shareholders. In connection with the Special Dividend, pursuant to anti-dilution provisions in the 2017 Omnibus Equity Incentive Plan (the “2017 Plan”), the Company adjusted outstanding equity awards in order to prevent dilution of such awards. Accordingly, the Company adjusted the number of outstanding unvested restricted stock units (“RSUs”) as of the payment date of the dividend with an additional number of RSUs (“Dividend Equivalent Units” or “DEUs”) equal to the quotient obtained by dividing (x) (y) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Feb. 01, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions During the Fiscal Years 2019, 2018 and 2017, the Company incurred an immaterial amount of related party expenses. Related party expenses are included in operating expenses in the consolidated statements of operations and comprehensive income. |
Barter Arrangement
Barter Arrangement | 12 Months Ended |
Feb. 01, 2020 | |
Barter Arrangement [Abstract] | |
Barter Arrangement | 17. Barter Arrangement The Company entered into a bartering arrangement with Evergreen Trading, a vendor, where the Company provided inventory in exchange for media credits. During Q3 of Fiscal Year 2019, the Company exchanged $3.3 million of inventory for certain media credits. To account for the exchange, the Company recorded the transfer of the inventory asset as a reduction of inventory offset by a $2.5 million decrease in reserves and an increase to a prepaid media asset of $2.0 million which is included in “Prepaid and other current assets” and “Other assets” on the accompanying consolidated balance sheet. A gain of $1.3 million was recorded upon shipment of the inventory. The Company had $2.0 million of unused media credits remaining as of February 1, 2020 that will be used over seven years. The Company accounted for this barter transactions under ASC Topic No. 606 “Revenue from Contract with Customers.” Barter transactions with commercial substance are recorded at the estimated fair value of the products received. Revenue associated with barter transaction is recorded at the time of the exchange of the related assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events ABL and Term Loan Default The Company was in compliance with financial covenants as of February 1, 2020. However, the inclusion of substantial doubt about the Company’s ability to continue as a going concern in the report of our independent registered public accounting firm on our accompanying financial statements for the fiscal year ended February 1, 2020 results in a violation of affirmative covenants under our ABL Facility and Term Loan Agreement. In addition, as a result of COVID-19 related store closures, the Company was unable to meet the non-financial and financial covenants for the period ended May 2, 2020. If we are unable to obtain a waiver from our lenders, our lenders could instruct the administrative agent under such credit facilities to exercise available remedies including, declaring the principal of and accrued interest on all outstanding indebtedness immediately due and payable and terminating all remaining commitments and obligations under the credit facilities. Although the lenders under our credit facilities may waive the defaults or forebear the exercise of remedies, they are not obligated to do so. Failure to obtain such a waiver would have a material adverse effect on the liquidity, financial condition and results of operations and may result in filing a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in order to implement a restructuring plan. Our future operating performance and our ability to service or extend our indebtedness will be subject to future economic conditions and to financial, business, and other factors, many of which are beyond our control. We are seeking to amend our ABL Facility to provide for further incremental borrowings. ABL Draw down On March 16, 2020, the Company elected to draw down $33.0 million from its ABL Facility as a precautionary measure in order to increase our cash position, preserve financial flexibility and maintain liquidity in response to the COVID-19 outbreak. After the draw down the Company’s available borrowing capacity under the ABL Facility is $5.3 million. The Company has no intention to draw down any additional amount from the ABL Facility. We intend to hold the proceeds from the incremental borrowing on our balance sheet and, in accordance with the terms of the ABL Facility, may use the proceeds in the future for working capital, general corporate or other purposes permitted thereunder. Asset Impairments As discussed in Note 2, the Company expects the COVID-19 pandemic to have a material adverse effect on results of operations, financial position and liquidity arising after the fiscal year ended February 1, 2020. The outbreak is having an impact on the global economy, resulting in rapidly changing market and economic conditions, which may impact the Company. During the first quarter of Fiscal Year 2020, the Company evaluated the changes in facts and circumstances and general market declines resulting from the COVID-19 pandemic, including their impact on its current operating results and whether an impairment triggering event has occurred on its indefinite-lived intangible assets, long-lived assets (including finite-lived intangible assets) and goodwill. Subsequent to year end and through the date of this filing, the Company has experienced a significant decline in its net sales as its retail locations were closed. As a result, management has concluded that there was a goodwill, indefinite-lived intangible assets and long-lived asset impairment triggering event for the Company in the first quarter of Fiscal Year 2020, which resulted in management performing an impairment evaluation of its goodwill, intangible and other long-lived asset balances. The Company expects to record a material impairment amount in Q1 of Fiscal Year 2020. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 19. Quarterly Financial Data (unaudited) The following table sets forth our historical consolidated statements of income for each of the eight fiscal quarters through the year ended February 1, 2020. This unaudited quarterly information has been prepared on the same basis as our annual audited consolidated financial statements, consisting of only normal recurring adjustments that we consider necessary to fairly present the financial information for the fiscal quarters presented below. Fiscal Year 2018 Fiscal Year 2019 Thirteen weeks ended Thirteen weeks ended May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 May 4, 2019 August 3, 2019 November 2, 2019 February 1, 2020 (in thousands, unaudited) Net sales $ 181,541 $ 179,713 $ 174,106 $ 170,902 $ 176,452 $ 180,744 $ 166,085 $ 168,064 Costs of goods sold 61,200 63,058 58,643 63,081 60,196 75,403 59,137 68,030 Gross profit 120,341 116,655 115,463 107,821 116,256 105,341 106,948 100,034 Selling, general and administrative expenses 100,294 97,365 101,589 99,794 105,445 104,698 97,972 100,954 Impairment of goodwill - - - - - 88,428 - 31,000 Impairment of indefinite- lived intangible assets - - - - - 7,000 - 5,100 Operating income 20,047 19,290 13,874 8,027 10,811 (94,785 ) 8,976 (37,020 ) Interest expense, net 4,817 4,853 4,698 4,696 5,007 5,019 4,826 4,719 Income before provision (benefit) for income taxes 15,230 14,437 9,176 3,331 5,804 (99,804 ) 4,150 (41,739 ) Income tax provision (benefit) 3,972 3,952 2,488 1,237 1,438 (3,069 ) 1,763 (3,154 ) Net income $ 11,258 $ 10,485 $ 6,688 $ 2,094 $ 4,366 $ (96,735 ) $ 2,387 $ (38,585 ) Net income per common share attributable to common shareholders: Basic $ 0.27 $ 0.24 $ 0.16 $ 0.05 $ 0.10 $ (2.21 ) $ 0.05 $ (0.88 ) Diluted $ 0.26 $ 0.23 $ 0.15 $ 0.05 $ 0.10 $ (2.21 ) $ 0.05 $ (0.88 ) Weighted average number of common shares outstanding: Basic 42,216,331 42,855,366 42,953,173 43,060,392 43,327,519 43,793,348 43,838,667 44,017,340 Diluted 43,407,414 44,716,193 44,475,793 44,359,599 44,478,153 43,793,348 43,950,702 44,017,340 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company uses a 52 to 53-week fiscal year ending on the Saturday 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 Years of 2019 and 2018 had 52-weeks of operations and Fiscal Year 2017 had 53-weeks of operations. |
Substantial Doubt about the Company's Ability to Continue as a Going Concern | Substantial Doubt about the Company’s Ability to Continue as a Going Concern In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements - Going Concern”, the Company’s management evaluated whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the financial statements’ issuance date. The following matters raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. The Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern. COVID-19 Pandemic: In December 2019, COVID-19 emerged and has subsequently spread worldwide. The World Health Organization declared COVID-19 a pandemic on March 11, 2020 resulting in federal, state and local governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay at home orders and advisories and quarantining of people who may have been exposed to the virus. After close monitoring and taking into consideration the guidance from federal, state and local governments, in an effort to mitigate the spread of COVID-19, effective March 18, 2020, the Company closed all of its stores and its offices with employees working remotely where possible. Our distribution center and online business continue to operate; however, the Company continues to monitor developments, including government requirements and recommendations at the national, state, and local level to evaluate possible closure of our distribution center and extensions to all or part of our store closures. As a result, the Company’s revenues, results of operations and cash flows have been materially adversely impacted which will also result in a failure by us to comply with the financial covenants contained in our ABL Facility and Term Loan Agreements. substantial doubt about the Company’s ability to continue as In response to the COVID-19 pandemic, we are taking aggressive and prudent actions to reduce expenses and defer payment of accounts payables and inventory purchases to preserve cash on-hand. These actions include, but are not limited to: • temporary furlough of substantially all retail employees for the duration of store closures at their location and subject to reduced staffing for a phase-in period upon reopening; • base salary reductions for our senior leadership team and suspension of pay raise for corporate employees; • extension of payment terms for all accounts payable other than those necessary to support our ecommerce business; • withholding payment of approximately $12.0 million of rent at all of our retail locations, beginning in April 2020, subject to discussion with our landlords; • extended payment terms with merchandising vendors; • eliminated one of our catalogs and are considering implementing this as a permanent change; • limiting investments in our ecommerce business to necessary website and supporting functions; and • suspension of nearly all capital expenditures. Additionally, we borrowed $33.0 million under our ABL Facility in March 2020. We are seeking to amend our ABL Facility to provide for further incremental borrowings. On May 15, 2020, the Company began reopening its stores and as of the issuance date, approximately half of its stores have been reopened in accordance with local government guidelines. The Company expects to continue reopening stores in a phased approach as more states reopen for retail. There is significant uncertainty around the duration of these store closures and other business disruptions related to COVID-19, as well as its impact on the U.S. economy, consumer willingness to visit malls and shopping centers, and employee willingness to staff our stores as they continue to reopen. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that affect reported amounts of assets, liabilities, shareholders’ equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include, but are not limited to, revenue recognition, including merchandise returns and accounting for gift card breakage; estimating the fair value of inventory and inventory reserves; impairment assessments of goodwill, intangible assets, and other long-lived assets; and equity-based compensation. As a result of the COVID-19 pandemic, the Company considered relevant impacts to its estimates related to merchandise returns reserve, estimating the fair value of inventory and inventory reserves; impairment assessments of goodwill, intangible assets, and other long-lived assets and there may be changes to those estimates in future periods. Actual results could differ from those estimates, and such differences could be material. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. |
Segment Reporting | Segment Reporting The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company’s operating segments consist of its retail and direct channels, which have been aggregated into one reportable segment. All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside the United States, nor does any customer represent more than 10% of total revenues for any period presented. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under this method, acquired assets, including separately identifiable intangible assets, and any assumed liabilities are recorded at their acquisition date estimated fair value. The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount resulting from the acquisition. Determining the fair value of assets acquired and liabilities assumed involves the use of significant estimates and assumptions. |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable relate primarily to payments due from banks for credit and debit transactions for approximately 2 to 5 days of sales. These receivables do not bear interest. |
Inventories | Inventories Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or net realizable value, net of reserves. Cost is calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Company’s manufacturers plus duties, tariffs, inbound freight and commissions. The net realizable value of the Company’s inventory is estimated based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including past and projected sales performance and current inventory levels. As of February 1, 2020 and February 2, 2019, an inventory reserve of $3.8 million and $2.6 million has been recorded, respectively. The Company sells excess inventory in its stores and on-line at www.jjill.com. In limited cases, inventory liquidators are utilized. Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is recorded when goods are cleared for export on board the ship at the port of shipment. |
Property and Equipment | Property and Equipment Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the accompanying consolidated statements of operations and comprehensive income. Estimated useful lives of property and equipment asset categories are as follows: Furniture, fixtures and equipment 5-7 years Computer software and hardware 3-5 years Leasehold improvements Shorter of estimated useful life or lease term |
Capitalized Interest | Capitalized Interest The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment. |
Long-lived Assets | Long-lived Assets The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating or cash flow performance that demonstrates continuing losses associated with an asset or asset group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the market participant rate. The fair value measurement includes the fair value of the right of use asset and will not be written down below the asset’s fair value. Any impairment charge would be recognized within operating expenses. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets 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. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business. At each fiscal year-end, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment initially using a qualitative approach (“step zero”) to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes, based on its assessment of relevant events, facts and circumstances that it is more likely than not that a reporting unit’s carrying value is greater than its fair value, then a quantitative analysis will be performed to determine if there is any impairment. The Company may also elect to initially perform a quantitative analysis instead of starting with step zero. The quantitative assessment requires comparing the fair value of a reporting unit to its carrying value, including goodwill. The Company estimates fair value using the income approach. The income approach uses a discounted cash flow model, which involves significant estimates and assumptions, including preparation of revenue and profitability growth forecasts, selection of a discount rate, and selection of a terminal year multiple. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and no further testing is required. If the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge is recognized for the amount in excess, not to exceed the total amount of goodwill allocated to that reporting unit. An impairment charge is recorded within the Company’s consolidated statement of operations and comprehensive income. At each year end, the Company also performs an impairment analysis of its indefinite-lived intangible assets. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trade name using the relief from royalty method. The most significant estimates and assumptions inherent in this approach are the preparation of revenue forecasts, selection of royalty and discount rates and a terminal year multiple. These assumptions are classified as Level 3 inputs. |
Revenue Recognition | Revenue Recognition Revenue is primarily derived from the sale of apparel and accessory merchandise through our retail channel and direct channel, which includes website and catalog phone orders. Revenue also includes shipping and handling fees collected from customers. Topic 606 requires entities to recognize revenue when control of the promised goods or services are transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Revenue from our retail channel is recognized at the time of sale and revenue from our direct channel is recognized upon shipment of merchandise to the customer. The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the time of sale, the Company records an estimated sales reserve for merchandise returns based on historical prior returns experience and expected future returns. The estimated sales reserve is recorded as a return asset (and corresponding adjustment to cost of goods sold) for the cost of inventory and a return liability for the amount to settle the return with a customer (and a corresponding adjustment to revenue). The return asset and return liability are recorded in prepaid expenses and other assets, and accrued expenses and other current liabilities, respectively, in the consolidated balance sheet. The Company collects and remits sales and use taxes in all states in which retail and direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue. The Company sells gift cards without expiration dates to customers. The Company does not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as a contract liability until the customer redeems the gift card or when the likelihood of redemption is remote. Based on historical experience, the Company estimates the value of outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and will not be escheated under statutory state unclaimed property laws. This gift card breakage is recognized as revenue over the time period established by the Company’s historical gift card redemption pattern. The Company recognizes revenues from shipments to customers before the shipping and handling activities occur and will accrue those related costs. Shipping and handling costs are recorded in selling, general and administrative expenses. |
Costs of Goods Sold | Costs of Goods Sold The Company’s costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. |
Advertising Costs | Advertising Costs The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are capitalized as incurred and expensed when the catalog is mailed to the customer (the first time the advertising occurs). Advertising expenses were $32.6 million, $38.5 million, and $39.2 million for the Fiscal Years 2019, 2018, and 2017, respectively. The costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Other advertising costs are recorded as incurred. Other advertising costs recorded were $26.3 million, $23.8 million, and $20.9 million for the Fiscal Years 2019, 2018, and 2017, respectively. The costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease at inception. Lease agreements will typically exist with lease and non-lease components, which are generally accounted for separately. The Company recognizes operating lease liabilities equal to the present value of the lease payments and operating lease assets representing the right to use the underlying asset for the lease term. The lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments. The operating lease assets include any lease payments made prior to lease commencement and are reduced by any lease incentives. Under Topic 842, for any new leases entered into, the Company will assess if it is reasonably certain to exercise lease options to extend or terminate the lease for inclusion (or exclusion) in the lease term when the Company measures the lease liability. The depreciable life of any assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels. Variable rental payments are recognized in the consolidated statement of operations and comprehensive income in the period in which the obligation for those payments are incurred. If such variable operating leases arise that include incentives from landlords in the form of cash, the Company will record the full amount of the incentive when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable lease, including options to extend if they are reasonably certain to be exercised. The Company recognized those liabilities to be amortized within a year as a current liability and those greater than a year as a long-term liability. For purposes of recognizing these incentives and rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the lease asset to begin amortization, which is generally when the Company takes possession of the asset. |
Debt Issuance Costs | Debt Issuance Costs The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying amount of the debt on the Company’s balance sheet. From time-to-time the Company could make prepayments on the long-term debt and a portion of the debt issuance costs associated with the prepayment would be accelerated and expensed at that time. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax basis, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies. The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur. Any interest or penalties incurred are recorded in the selling, general, and administrative expenses line item of the accompanying consolidated statements of operations and comprehensive income. The Company incurred immaterial amounts of interest expense and penalties related to income taxes for Fiscal Years 2019, 2018 and 2017. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value in accordance with GAAP. 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 requires 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 asset or liability 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 liability. As of February 1, 2020 the Company had no assets or liabilities that were measured at fair value for reporting purposes on a recurring basis. The fair value of the Company’s debt, as measured through the level 2 measurements, was approximately $200.5 million and $242.2 million at February 1, 2020 and February 2, 2019, respectively. 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. |
Comprehensive Income | Comprehensive Income Comprehensive income is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income. The Company’s management has determined that net income is the only component of the Company’s comprehensive income. Accordingly, there is no difference between net income and comprehensive income. |
Equity-based Compensation | Equity-based Compensation The Company accounts for equity-based compensation for employees and directors by recognizing the fair value of equity-based compensation as an expense in the calculation of net income, based on the grant-date fair value. The Company recognizes equity-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the equity-based awards is determined using the Black-Scholes option pricing model or the stock price on the date of grant. All of the equity-based awards granted by the Company during the Fiscal Years |
Earnings Per Share | Earnings Per Share Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. There were no potentially dilutive securities outstanding during Fiscal Year 2019. There were 1.5 million and 1.6 million dilutive securities outstanding during the Fiscal Years 2018 and 2017, respectively. |
Credit Card Agreement | Credit Card Agreement The Company has an arrangement with a third party to provide a private label credit card to its customers through August 2023, and will automatically renew thereafter for successive two year terms. The Company does not bear the credit risk associated with the private label credit card at any point prior to the termination of the agreement, at which point the Company would be obligated to purchase the receivables. If the arrangement is terminated prior to September 7, 2021 and other criteria are met, the Company is obligated to pay a purchase price premium. The potential impact of the purchase obligation cannot be reasonably estimated, and therefore, has not been recorded. The Company receives royalty payments through its private label credit card agreement. The royalty payments are recognized as revenue when they are received. Royalty payments recognized were $5.6 million, $5.6 million, and $4.7 million for the Fiscal Years 2019, 2018 and 2017, respectively. The Company also receives reimbursements for costs of marketing programs related to the private label credit card, which are recorded as revenue as earned and the costs incurred are recorded as operating expenses in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income. Reimbursements for costs of marketing programs of $1.9 million, $2.4 million and $1.3 million were recognized in revenue in Fiscal Years 2019, 2018 and 2017, respectively. The credit card agreement provides a signing bonus to the Company, which is recognized into revenue over the life of the agreement. |
Employee Benefit Plan | Employee Benefit Plan The Company has a 401(k) retirement plan under third-party administration covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company may, at its discretion, make elective contributions of up to 50% of the first 6% of the gross salary of the employee, which vests over a five-year period. Discretionary contributions made by the Company for the Fiscal Years 2019, 2018 and 2017 were $1.5 million, $1.5 million, and $1.1 million, respectively. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for doubtful accounts is necessary. As of February 1, 2020 and February 2, 2019, the Company determined that no allowance for doubtful accounts was necessary. |
Recently Adopted Accounting Standards and Issued Accounting Pronouncements | Recently Adopted Accounting Standards In July 2018, the FASB issued ASU 2018-09 – Codification Improvements , which facilitates amendments to a variety of topics to clarify, correct errors in, or make minor improvements to the accounting standards codification. The effective date of the standard is dependent on the facts and circumstances of each amendment. Some amendments do not require transition guidance and will be effective upon the issuance of this standard. The standard was adopted as of February 3, 2019, and In June 2018, the FASB issued ASU 2018-07 – Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting The Company adopted ASU 2016-02- Leases The Company applied a portfolio approach to effectively account for the operating lease liabilities and operating lease assets; the Company did not have financing leases. The Company excludes leases with an initial term of 12 months or less from the application of Topic 842. The Company did not elect the hindsight practical expedient; therefore, upon adoption, the Company used the remaining lease term of the current lease, option or extension. Adoption of the new standard resulted in the recording of operating lease assets and operating lease liabilities of $223.3 million and $250.5 million, respectively, on the Company’s consolidated balance sheet as of February 3, 2019. The difference between the approximate value of the operating lease assets and liabilities is attributable to deferred rent, deferred rent incentives, leasehold interests and prepaid rent. There was no material impact on the Company’s consolidated statement of operations and comprehensive income or consolidated statements of cash flows. The Company’s comparative periods continue to be presented and disclosed in accordance with legacy guidance in Topic 840. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) Revenue Recognition The Company adopted ASU 2014-09 and related amendments, collectively known as Accounting Standards Codification 606 (“Topic 606”) as of February 4, 2018 on a modified retrospective basis applied to contracts which were not completed as of February 4, 2018. As part of the adoption of Topic 606, Topic 340-20 – Capitalized Advertising Costs Advertising Costs Recently Issued Accounting Pronouncements In November 2018, the FASB issued ASU 2018-18 – Collaborative Arrangements In September 2018, the FASB issued ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment Asset | Estimated useful lives of property and equipment asset categories are as follows: Furniture, fixtures and equipment 5-7 years Computer software and hardware 3-5 years Leasehold improvements Shorter of estimated useful life or lease term |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues Disaggregated by Revenue Source | The following table presents revenues disaggregated by revenue source (in thousands): For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 (1) Retail $ 389,521 $ 412,640 $ 397,353 Direct 301,824 293,622 300,792 Net revenues $ 691,345 $ 706,262 $ 698,145 (1) As previously noted, prior period amounts have not been adjusted under the modified retrospective method. |
Schedule of Contract Liabilities | Total contract liabilities consisted of the following (in thousands): February 1, 2020 February 2, 2019 Contract liabilities: Signing bonus $ 506 $ 647 Unredeemed gift cards 7,264 7,081 Total contract liabilities (1) $ 7,770 $ 7,728 (1) Included in accrued expenses and other current liabilities on the Company's consolidated balance sheet. The short term portion of the signing bonus is included in accrued expenses on the Company’s consolidated balance sheet. |
Schedule of Revenue Recognized Over Remaining Life of Contract | The Company will recognize revenue over the remaining life of the contract as follows (in thousands): Fiscal Year 2020 Fiscal Year 2021 Thereafter Signing bonus $ 141 $ 141 $ 224 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include the following (in thousands): February 1, 2020 February 2, 2019 Prepaid rent $ 2,494 $ 5,947 Prepaid catalog costs 2,590 3,032 Prepaid store supplies 2,102 1,931 Returns reserve asset 5,134 4,295 Income tax receivable 3,298 3,923 Other prepaid expenses 4,477 5,070 Other current assets 2,161 3,536 Total prepaid expenses and other current assets $ 22,256 $ 27,734 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | A summary of intangible assets as of February 1, 2020 and February 2, 2019 is as follows (in thousands): Weighted Average February 1, 2020 February 2, 2019 Useful Life (Years) Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Indefinite-lived: Trade name (1) N/A $ 46,000 $ — $ 46,000 $ 58,100 $ — $ 58,100 Definite-lived: Customer relationships 13.2 134,200 (67,386 ) 66,814 134,200 (56,123 ) 78,077 Total intangible assets $ 180,200 $ (67,386 ) $ 112,814 $ 192,300 $ (56,123 ) $ 136,177 (1) The gross value of the Company's trade name was impaired $12.1 million in FY 2019 |
Summary of Estimated Useful Lives of Intangible Assets | The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows: Asset Amortization Method Estimated Useful Life Customer lists Pattern of economic benefit 9 - 16 years |
Summary of Estimated Amortization Expense | The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands): Fiscal Year Estimated Amortization Expense 2020 $ 10,015 2021 9,005 2022 8,094 2023 7,373 2024 5,312 Thereafter 27,015 Total $ 66,814 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at February 1, 2020 and February 2, 2019 consist of the following (in thousands): February 1, 2020 February 2, 2019 Leasehold improvements $ 107,853 $ 98,117 Furniture, fixtures and equipment 50,880 47,164 Computer hardware and software 51,996 43,668 Total property and equipment, gross 210,729 188,949 Accumulated depreciation (106,543 ) (81,192 ) 104,186 107,757 Construction in progress 3,459 10,287 Property and equipment, net $ 107,645 $ 118,044 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities include the following (in thousands): February 1, 2020 February 2, 2019 Accrued payroll and benefits $ 4,034 $ 3,599 Accrued returns reserve 12,822 10,849 Gift certificates redeemable 7,265 7,081 Accrued professional fees 1,673 2,901 Taxes, other than income taxes 2,594 3,132 Accrued occupancy 1,136 3,995 Other accrued employee costs 2,219 4,510 Other 10,969 9,239 Total accrued expenses and other current liabilities $ 42,712 $ 45,306 |
Schedule of Changes in Accrued Returns Reserve | The following table reflects the changes in the accrued returns reserve for the Fiscal Years 2019, 2018, and 2017 (in thousands): Accrued returns reserve Beginning of Period Charged to Expenses Deductions End of Period Fiscal Year Ended Year Ended February 3, 2018 $ 6,883 $ 131,322 $ (130,542 ) 7,663 Fiscal Year Ended Year Ended February 2, 2019 7,663 134,887 (131,700 ) 10,849 Fiscal Year Ended Year Ended February 1, 2020 10,849 138,355 (136,382 ) 12,822 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring And Related Activities [Abstract] | |
Activity of Restructuring Costs and Related Accruals | The following table summarizes the activity of the restructuring costs discussed above and related accruals recorded in accrued other and other current liabilities on the consolidated balance sheet (in thousands) : February 3, 2019 Charges Incurred Cash Payments Adjustments February 1, 2020 Employee separation costs $ — $ 1,402 $ 1,186 $ — $ 216 Other — 195 156 — 39 Total restructuring costs $ — $ 1,597 $ 1,342 $ — $ 255 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Components of Outstanding Term Loan | The components of the Company’s outstanding Term Loan were as follows (in thousands): February 1, 2020 February 2, 2019 Term loan $ 237,579 $ 245,378 Discount on debt and debt issuance costs (3,580 ) (5,115 ) Less: Current portion (2,799 ) (2,799 ) Net long-term debt $ 231,200 $ 237,464 |
Schedule of Minimum Future Principal Amounts Payable Under Term Loan | As of February 1, 2020, minimum future principal amounts payable under the Company’s Term Loan Agreement are as follows (in thousands): Fiscal Year 2020 $ 2,799 2021 2,799 2022 231,981 2023 — 2024 — Thereafter — Total $ 237,579 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Lease Cost Classification For the Fiscal Year Ended February 1, 2020 Operating lease cost SG&A Expenses $ 47,482 Variable lease cost SG&A Expenses 3,434 Total lease cost $ 50,916 |
Schedule of Lease Terms and Discount Rate | For the fiscal year ended February 1, 2020, the total cash paid for amounts included in the measurement of operating lease liabilities was $48.0 million. Lease Term and Discount Rate February 1, 2020 Weighted-average remaining lease term (in years) Operating leases 7.2 Weighted-average discount rate Operating leases 6.5 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of February 1, 2020 were as follows (in thousands): Fiscal Year Operating Leases (1) 2020 $ 44,688 2021 47,009 2022 42,857 2023 39,760 2024 34,998 Thereafter 97,894 Less: Imputed interest 64,531 Present value of lease liabilities $ 242,675 |
Summary of Future Minimum Rental Payments Under Non-Cancelable Operating Lease Obligations | Under Topic 840, future minimum rental payments required under all non-cancellable operating lease obligations as of February 2, 2019 were as follows (in thousands): Fiscal Year 2019 $ 49,399 2020 46,512 2021 43,872 2022 39,369 2023 36,459 Thereafter 110,376 Total $ 325,987 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The (benefit) provision for income taxes for the Fiscal Years 2019, 2018, and 2017 consists of the following (in thousands): For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 Current U.S. Federal $ 5,636 $ 11,634 $ 17,510 State and local 2,165 4,334 4,299 Total current 7,801 15,968 21,809 Deferred tax benefit U.S. Federal (8,681 ) (3,513 ) (28,374 ) State and local (2,142 ) (806 ) 1,126 Total deferred tax benefit (10,823 ) (4,319 ) (27,248 ) Total income tax provision (benefit) $ (3,022 ) $ 11,649 $ (5,439 ) |
Schedule of Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows for the periods presented: For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 Federal statutory income tax rate 21.0 % 21.0 % 33.8 % State income taxes, net of federal tax effect 0.3 % 6.3 % 4.7 % Goodwill impairment (19.1 )% 0.0 % 0.0 % Tax rate changes 0.0 % 0.0 % (48.3 )% Acquisition-related costs 0.0 % 0.0 % 1.2 % Nondeductible equity-based compensation expense 0.1 % 0.3 % 0.2 % Charitable contributions 0.1 % (0.6 )% (1.7 )% Tax return to provision adjustments 0.0 % 0.1 % (1.2 )% Other (0.1 )% 0.5 % 0.4 % Effective tax rate 2.3 % 27.6 % (10.9 )% |
Components of Deferred Income Tax Assets and (Liabilities) | The components of deferred tax assets (liabilities) were as follows (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets Accrued expenses $ 5,384 $ 6,755 Start-up costs 618 681 Lease liabilities 64,068 - Total deferred tax assets 70,070 7,436 Deferred tax liabilities Inventory (2,496 ) (1,921 ) Lease assets (54,721 ) - Fixed assets (15,341 ) (13,413 ) Intangible assets (27,826 ) (33,137 ) Prepaid expenses (720 ) (807 ) Total deferred tax liabilities (101,104 ) (49,278 ) Net deferred tax liabilities $ (31,034 ) $ (41,842 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 for the Fiscal Years 2019, 2018, and 2017 (in thousands, except share and per share data): For the Fiscal Year Ended February 1, 2020 For the Fiscal Year Ended February 2, 2019 For the Fiscal Year Ended February 3, 2018 Numerator Net income attributable to common shareholders: $ (128,567 ) $ 30,525 $ 55,365 Denominator Weighted average number of common shares outstanding, basic: 43,749,324 42,771,316 41,926,157 Dilutive effect of stock options and restricted shares: — 1,468,435 1,645,589 Weighted average number of common shares outstanding, diluted: 43,749,324 44,239,751 43,571,746 Net income per common share attributable to common shareholders, basic: $ (2.94 ) $ 0.71 $ 1.32 Net income per common share attributable to common shareholders, diluted: $ (2.94 ) $ 0.69 $ 1.27 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity during Fiscal Year 2019, inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Unvested units outstanding at February 2, 2019 2,883,395 $ 3.21 Granted 2,431,479 4.18 Vested (1,238,838 ) 4.08 Forfeited (1,630,677 ) 4.57 Unvested units outstanding at February 1, 2020 2,445,359 $ 2.55 |
Summary of Stock Option Activity | The following table summarizes stock option activity during Fiscal Year 2019, inclusive of inducement awards: Number of Units Weighted- Average Grant Date Fair Value Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms Aggregate- Intrinsic Value (1) (years) (thousands) Options outstanding at February 3, 2018 265,116 $ 6.05 $ 13.26 $ — $ — Granted 796,870 2.20 4.90 — — Exercised — — — — — Forfeited (12,435 ) 6.03 13.12 — — Options outstanding at February 2, 2019 1,049,551 $ 3.13 $ 6.91 9.0 $ 749.1 Granted — — — — — Exercised — — — — — Forfeited (945,097 ) 2.81 5.08 — — Options outstanding at February 1, 2020 104,454 $ 6.03 $ 11.97 7.3 $ — Options exercisable at February 1, 2020 52,227 $ 6.03 $ 11.97 7.3 $ — (1) The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. |
Fair Values Estimated Using Black-Scholes Option-Pricing Model | The fair values of options are estimated using the Black-Scholes option-pricing model with the following assumptions: February 2, 2019 Risk-free rate 2.14% Expected term (in years) 6.25 Expected volatility 41.81% Expected dividend yield 0.00% |
Purchase Plan [Member] | |
Fair Values Estimated Using Black-Scholes Option-Pricing Model | The fair value of shares purchased under the Purchase Plan are estimated using the Black-Scholes option-pricing model with the following assumptions: February 1, 2020 February 2, 2019 Risk-free rate 1.59% 2.63% Expected term (in years) 1.00 1.00 Expected volatility 45.11% 42.54% Expected dividend yield 0.00% 0.00% |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Historical Consolidated Statements of Income | The following table sets forth our historical consolidated statements of income for each of the eight fiscal quarters through the year ended February 1, 2020. This unaudited quarterly information has been prepared on the same basis as our annual audited consolidated financial statements, consisting of only normal recurring adjustments that we consider necessary to fairly present the financial information for the fiscal quarters presented below. Fiscal Year 2018 Fiscal Year 2019 Thirteen weeks ended Thirteen weeks ended May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 May 4, 2019 August 3, 2019 November 2, 2019 February 1, 2020 (in thousands, unaudited) Net sales $ 181,541 $ 179,713 $ 174,106 $ 170,902 $ 176,452 $ 180,744 $ 166,085 $ 168,064 Costs of goods sold 61,200 63,058 58,643 63,081 60,196 75,403 59,137 68,030 Gross profit 120,341 116,655 115,463 107,821 116,256 105,341 106,948 100,034 Selling, general and administrative expenses 100,294 97,365 101,589 99,794 105,445 104,698 97,972 100,954 Impairment of goodwill - - - - - 88,428 - 31,000 Impairment of indefinite- lived intangible assets - - - - - 7,000 - 5,100 Operating income 20,047 19,290 13,874 8,027 10,811 (94,785 ) 8,976 (37,020 ) Interest expense, net 4,817 4,853 4,698 4,696 5,007 5,019 4,826 4,719 Income before provision (benefit) for income taxes 15,230 14,437 9,176 3,331 5,804 (99,804 ) 4,150 (41,739 ) Income tax provision (benefit) 3,972 3,952 2,488 1,237 1,438 (3,069 ) 1,763 (3,154 ) Net income $ 11,258 $ 10,485 $ 6,688 $ 2,094 $ 4,366 $ (96,735 ) $ 2,387 $ (38,585 ) Net income per common share attributable to common shareholders: Basic $ 0.27 $ 0.24 $ 0.16 $ 0.05 $ 0.10 $ (2.21 ) $ 0.05 $ (0.88 ) Diluted $ 0.26 $ 0.23 $ 0.15 $ 0.05 $ 0.10 $ (2.21 ) $ 0.05 $ (0.88 ) Weighted average number of common shares outstanding: Basic 42,216,331 42,855,366 42,953,173 43,060,392 43,327,519 43,793,348 43,838,667 44,017,340 Diluted 43,407,414 44,716,193 44,475,793 44,359,599 44,478,153 43,793,348 43,950,702 44,017,340 |
General - Additional Informatio
General - Additional Information (Detail) | Feb. 24, 2017shares | Feb. 01, 2020Store |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Issuance of Common Stock, shares | shares | 43,747,944 | |
Minimum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of stores | Store | 280 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 01, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($)SegmentCustomer | Feb. 02, 2019USD ($)shares | Feb. 03, 2018USD ($)shares | Jan. 28, 2017USD ($)shares | Mar. 31, 2020USD ($) | Mar. 16, 2020USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Number of reportable segments | Segment | 1 | |||||||||||||
Number of customers with more than 10% of revenues | Customer | 0 | |||||||||||||
Inventory reserve | $ 3,800,000 | $ 2,600,000 | $ 3,800,000 | $ 2,600,000 | ||||||||||
Financial assets measured at fair value on recurring basis | 0 | 0 | 0 | 0 | ||||||||||
Financial liabilities measured at fair value on recurring basis | 0 | 0 | 0 | 0 | ||||||||||
Fair value of debt | 200,500,000 | 242,200,000 | $ 200,500,000 | $ 242,200,000 | ||||||||||
Dilutive securities outstanding | shares | 0 | 1,500,000 | 1,600,000 | |||||||||||
Credit card arrangement extension, description | The Company has an arrangement with a third party to provide a private label credit card to its customers through August 2023, and will automatically renew thereafter for successive two year terms. | |||||||||||||
Royalty payments recognized as revenue | 168,064,000 | $ 166,085,000 | $ 180,744,000 | $ 176,452,000 | 170,902,000 | $ 174,106,000 | $ 179,713,000 | $ 181,541,000 | $ 691,345,000 | $ 706,262,000 | $ 698,145,000 | |||
Employee benefit plan description of elective contributions | The Company may, at its discretion, make elective contributions of up to 50% of the first 6% of the gross salary of the employee, which vests over a five-year period. | |||||||||||||
Employee benefit plan elective contributions, vesting period | 5 years | |||||||||||||
Discretionary contributions made by Company | $ 1,500,000 | 1,500,000 | $ 1,100,000 | |||||||||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | 0 | ||||||||||
Royalty [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Royalty payments recognized as revenue | 5,600,000 | 5,600,000 | 4,700,000 | |||||||||||
Selling, General and Administrative Expenses [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Advertising expenses | 32,600,000 | 38,500,000 | 39,200,000 | |||||||||||
Other advertising expense | 26,300,000 | 23,800,000 | 20,900,000 | |||||||||||
Operating Expenses [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Reimbursements for credit card marketing program | $ 1,900,000 | $ 2,400,000 | $ 1,300,000 | |||||||||||
Minimum [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Threshold period for third-party credit and debit transactions | 2 days | |||||||||||||
Maximum [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Threshold period for third-party credit and debit transactions | 5 days | |||||||||||||
COVID-19 Pandemic [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Rent | $ 12,000,000 | |||||||||||||
Income tax refund | $ 7,700,000 | |||||||||||||
COVID-19 Pandemic [Member] | ABL Facility [Member] | Subsequent Event [Member] | ||||||||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||||||||
Cash drawn from facility | $ 33,000,000 | $ 33,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment Asset (Detail) | 12 Months Ended |
Feb. 01, 2020 | |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Computer Software and Hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer Software and Hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of estimated useful life or lease term |
Accounting Standards - Addition
Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 04, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 242,675 | ||
Operating lease assets, net | 211,332 | ||
Expected sales returns | $ 5,000 | ||
ASU 2016-02 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 250,500 | ||
Operating lease assets, net | $ 223,300 | ||
ASU 2014-09 [Member] | Retained Earnings [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cumulative effect reduction to accumulated retained earnings | 800 | ||
ASU 2014-09 [Member] | Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cumulative effect reduction to accumulated retained earnings | 300 | ||
ASU 2014-09 [Member] | Retained Earnings [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cumulative effect reduction to accumulated retained earnings | $ 500 |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues Disaggregated by Revenue Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenues | $ 168,064 | $ 166,085 | $ 180,744 | $ 176,452 | $ 170,902 | $ 174,106 | $ 179,713 | $ 181,541 | $ 691,345 | $ 706,262 | $ 698,145 |
Retail [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenues | 389,521 | 412,640 | 397,353 | ||||||||
Direct [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenues | $ 301,824 | $ 293,622 | $ 300,792 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Liabilities (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Contract liabilities: | ||
Signing bonus | $ 506 | $ 647 |
Unredeemed gift cards | 7,264 | 7,081 |
Total contract liabilities | $ 7,770 | $ 7,728 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2019USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Jan. 08, 2019Container | |
Disaggregation Of Revenue [Line Items] | ||||||
Revenue recognized related to gift card redemptions and breakage | $ 12.8 | $ 12.4 | $ 12.2 | |||
Signing bonus | $ 0.5 | |||||
Number of Containers | Container | 2 | |||||
Insurance claim settlement amount | $ 3.3 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Proceeds from insurance claims | $ 2.4 |
Revenues - Schedule of Revenue
Revenues - Schedule of Revenue Recognized Over Remaining Life of Contract (Detail) $ in Thousands | Feb. 01, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Signing bonus | $ 500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-02-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Signing bonus | $ 141 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-02-02 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Signing bonus | $ 141 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-31 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Signing bonus | $ 224 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid rent | $ 2,494 | $ 5,947 |
Prepaid catalog costs | 2,590 | 3,032 |
Prepaid store supplies | 2,102 | 1,931 |
Returns reserve asset | 5,134 | 4,295 |
Income tax receivable | 3,298 | 3,923 |
Other prepaid expenses | 4,477 | 5,070 |
Other current assets | 2,161 | 3,536 |
Total prepaid expenses and other current assets | $ 22,256 | $ 27,734 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Feb. 01, 2020 | Aug. 03, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 77,597 | $ 77,597 | $ 197,026 | |||
Impairment of goodwill | 31,000 | $ 88,428 | 119,428 | |||
Impairment of indefinite-lived intangible assets | $ 5,100 | $ 7,000 | $ 12,100 | 12,100 | ||
Amortization expense for intangible assets | $ 11,300 | $ 12,800 | $ 14,500 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Total Intangible Assets, Gross | $ 180,200 | $ 192,300 |
Definite-lived Intangible Assets, Accumulated Amortization | (67,386) | (56,123) |
Total Intangible Assets, Net Book Value | $ 112,814 | 136,177 |
Customer Relationships [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Useful Life (Years) | 13 years 2 months 12 days | |
Definite-lived Intangible Assets, Gross | $ 134,200 | 134,200 |
Definite-lived Intangible Assets, Accumulated Amortization | (67,386) | (56,123) |
Definite-lived Intangible Assets, Net Book Value | 66,814 | 78,077 |
Trade Name [Member] | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived, Net Book Value | $ 46,000 | $ 58,100 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 01, 2020 | Aug. 03, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Impairment of indefinite-lived intangible assets | $ 5,100 | $ 7,000 | $ 12,100 | $ 12,100 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Useful Lives of Intangible Assets (Detail) - Customer Lists [Member] | 12 Months Ended |
Feb. 01, 2020 | |
Finite Lived Intangible Assets [Line Items] | |
Amortization Method | Pattern of economic benefit |
Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 9 years |
Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 16 years |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Detail) - Customer Relationships [Member] - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Fiscal Year Estimated Amortization Expense | ||
2020 | $ 10,015 | |
2021 | 9,005 | |
2022 | 8,094 | |
2023 | 7,373 | |
2024 | 5,312 | |
Thereafter | 27,015 | |
Definite-lived Intangible Assets, Net Book Value | $ 66,814 | $ 78,077 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 210,729 | $ 188,949 |
Accumulated depreciation | (106,543) | (81,192) |
Property and equipment, excluding construction in progress | 104,186 | 107,757 |
Construction in progress | 3,459 | 10,287 |
Property and equipment, net | 107,645 | 118,044 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 107,853 | 98,117 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 50,880 | 47,164 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 51,996 | $ 43,668 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | ||||
Capitalized software, subject to amortization on cost basis, included in property and equipment | $ 33,200,000 | $ 38,700,000 | ||
Capitalized software, accumulated amortization | 14,300,000 | $ 20,600,000 | ||
Total depreciation expense | 26,600,000 | $ 24,400,000 | $ 21,100,000 | |
Impairment charges | 2,300,000 | 0 | 2,200,000 | |
Interest cost capitalized in connection with construction in progress | $ 300,000 | $ 400,000 | $ 600,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Payables And Accruals [Abstract] | ||||
Accrued payroll and benefits | $ 4,034 | $ 3,599 | ||
Accrued returns reserve | 12,822 | 10,849 | $ 7,663 | $ 6,883 |
Gift certificates redeemable | 7,265 | 7,081 | ||
Accrued professional fees | 1,673 | 2,901 | ||
Taxes, other than income taxes | 2,594 | 3,132 | ||
Accrued occupancy | 1,136 | 3,995 | ||
Other accrued employee costs | 2,219 | 4,510 | ||
Other | 10,969 | 9,239 | ||
Total accrued expenses and other current liabilities | $ 42,712 | $ 45,306 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Schedule of Changes in Accrued Returns Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Payables And Accruals [Abstract] | |||
Accrued returns reserve, Beginning of Period | $ 10,849 | $ 7,663 | $ 6,883 |
Accrued returns reserve, Charged to Expenses | 138,355 | 134,887 | 131,322 |
Accrued returns reserve, Deductions | (136,382) | (131,700) | (130,542) |
Accrued returns reserve, End of Period | $ 12,822 | $ 10,849 | $ 7,663 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - 2019 Restructuring Plan [Member] $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring Charges | $ 1,597 |
Selling, General and Administrative Expenses [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring Charges | $ 1,600 |
Restructuring Costs - Activity
Restructuring Costs - Activity of Restructuring Costs and Related Accruals (Detail) - 2019 Restructuring Plan [Member] $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Charges Incurred | $ 1,597 |
Cash Payments | 1,342 |
Ending Balance | 255 |
Employee Separation Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges Incurred | 1,402 |
Cash Payments | 1,186 |
Ending Balance | 216 |
Other [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges Incurred | 195 |
Cash Payments | 156 |
Ending Balance | $ 39 |
Debt - Components of Outstandin
Debt - Components of Outstanding Term Loan (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Long Term Debt [Abstract] | ||
Term loan | $ 237,579 | $ 245,378 |
Discount on debt and debt issuance costs | (3,580) | (5,115) |
Less: Current portion | (2,799) | (2,799) |
Net long-term debt | $ 231,200 | $ 237,464 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Debt Instrument [Line Items] | ||||
Interest expense | $ 20.1 | $ 19.9 | $ 19.3 | |
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Voluntary prepayment of term loan | $ 5 |
Debt - Term Loan Credit Agreeme
Debt - Term Loan Credit Agreement (Detail) - USD ($) $ in Thousands | May 08, 2015 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | May 27, 2016 |
Debt Instrument [Line Items] | |||||
Debt instrument, outstanding amount | $ 237,579 | $ 245,378 | |||
Debt issuance cost amortized to interest expense | $ 1,500 | $ 1,400 | $ 2,200 | ||
Term Loan Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument term | 7 years | ||||
Debt instrument, face amount | $ 250,000 | ||||
Debt instrument, minimum LIBOR | 1.00% | 1.00% | |||
Debt instrument, interest rate description | Base Rate loans under the Term Loan Agreement accrue interest at a rate equal to (i) the greatest of (a) the financial institution’s prime rate, (b) the Federal Funds Effective Rate plus 0.50%, or (c) LIBOR, with a minimum LIBOR of 1.00% plus 1.00%, and (d) 2.00%. | ||||
Debt instrument, periodic payment | $ 700 | ||||
Debt instrument, periodic payment term | quarterly | ||||
Debt instrument, periodic payment maturity date | May 8, 2022 | ||||
Debt instrument, outstanding amount | $ 231,300 | ||||
Term Loan Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective percentage | 6.93% | 6.78% | 6.04% | ||
Term Loan Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective percentage | 7.75% | 7.53% | 6.78% | ||
Term Loan Credit Agreement [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread rate | 5.00% | 5.00% | |||
Debt instrument, additional basis spread rate | 2.00% | ||||
Term Loan Credit Agreement [Member] | Federal Funds Effective Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread rate | 0.50% | ||||
Term Loan Amendment [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 40,000 | ||||
Term Loan Agreement and Term Loan Amendment [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance cost | $ 11,300 |
Debt - Asset-Based Revolving Cr
Debt - Asset-Based Revolving Credit Agreement (Detail) - USD ($) | May 08, 2015 | Aug. 31, 2015 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jul. 01, 2016 | Feb. 01, 2020 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||||||||
Debt issuance cost amortized to interest expense | $ 1,500,000 | $ 1,400,000 | $ 2,200,000 | |||||
Credit facility default interest surcharge | 2.00% | |||||||
ABL Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term | 5 years | |||||||
Credit facility maximum borrowing capacity | $ 40,000,000 | |||||||
Debt instrument, initial maturity date | May 8, 2020 | |||||||
Debt instrument extended maturity date | May 8, 2023 | |||||||
Credit facility maximum borrowing, percentage of eligible credit card receivables | 90.00% | |||||||
Credit facility maximum borrowing, percentage of eligible accounts receivables | 85.00% | |||||||
Credit facility maximum borrowing, percentage lesser of eligible inventory | 100.00% | |||||||
Credit facility maximum borrowing, percentage lesser of eligible net orderly liquidation value of inventory | 90.00% | |||||||
Credit facility maximum borrowing, percentage lesser of eligible in-transit inventory | 100.00% | |||||||
Credit facility maximum borrowing, percentage lesser of eligible net orderly liquidation value of in-transit inventory | 90.00% | |||||||
Credit facility, frequency of payment and payment terms | the in-transit maximum amount (the in-transit maximum amount is not to exceed $12.5 million during the 1st and 3rd calendar quarters and $10.0 million during the 2nd and 4th calendar quarters) | |||||||
Credit facility, interest rate description | Interest on each LIBOR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan is payable in arrears on the last business day of April, July, October and January. For both LIBOR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at the election of the Company, or 12 months with the consent of all lenders. | |||||||
Credit facility commitment fee | 0.375% | |||||||
Credit facility commitment fee, each calendar quarter historical excess availability is greater than 50% | 0.375% | |||||||
Credit facility commitment fee, each calendar quarter historical excess availability is less than or equal 50% | 0.25% | |||||||
Credit facility commitment fee, minimum each calendar quarter historical excess availability | 50.00% | |||||||
Credit facility commitment fee, maximum each calendar quarter historical excess availability | 50.00% | |||||||
Credit Facility drawn or outstanding | $ 0 | 0 | $ 0 | $ 0 | ||||
Credit Facility available borrowing capacity | 38,300,000 | 38,200,000 | 38,300,000 | 38,300,000 | ||||
Debt issuance cost amortized to interest expense | $ 200,000 | $ 200,000 | $ 200,000 | |||||
Credit facility description of covenant | In the event of a payment default that is not cured within five business days or is not waived, or a covenant default that is not cured within 30 business days or is not waived, the Company’s obligations under these credit facilities may be accelerated. | |||||||
ABL Facility [Member] | Other Assets [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance cost | $ 1,100,000 | $ 1,100,000 | $ 1,100,000 | |||||
ABL Facility [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 1.00% | 2.00% | ||||||
ABL Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 1.50% | |||||||
ABL Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 1.75% | |||||||
ABL Facility [Member] | Federal Funds Effective Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 0.50% | |||||||
ABL Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 2.00% | 1.00% | ||||||
ABL Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 0.50% | |||||||
ABL Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread rate | 0.75% | |||||||
ABL Facility [Member] | 1st and 3rd Calendar Quarters [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum in-transit periodic payments | $ 12,500,000 | |||||||
Credit facility in-transit frequency of payments | quarters | |||||||
ABL Facility [Member] | 2nd and 4th Calendar Quarters [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum in-transit periodic payments | $ 10,000,000 | |||||||
Credit facility in-transit frequency of payments | quarters |
Debt - Letters of Credit (Detai
Debt - Letters of Credit (Detail) - Letter of Credit [Member] - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Debt Instrument [Line Items] | ||
Credit Facility drawn or outstanding | $ 1,700,000 | $ 1,800,000 |
Credit facility maximum borrowing capacity | $ 10,000,000 | |
Credit facility default surcharge percentage on interest | 2.00% | |
Credit facility initial term | 1 year | |
Letters of credit automatically annually renewal period | 1 year |
Debt - Schedule of Minimum Futu
Debt - Schedule of Minimum Future Principal Amounts Payable Under Term Loan (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Debt Disclosure [Abstract] | ||
2020 | $ 2,799 | |
2021 | 2,799 | |
2022 | 231,981 | |
Total | $ 237,579 | $ 245,378 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Supplier | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Commitments And Contingencies [Line Items] | ||
Number of suppliers | 2 | |
Other commitments, description | The Company enters into other cancelable and noncancelable commitments. Typically, these commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Company’s merchandise vendors are made approximately six months in advance of the planned receipt date. | |
Supplier Concentration Risk [Member] | Purchases [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk, percentage | 21.40% |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Line Items] | ||
Lessee, operating lease, option to extend | Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from one to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years. | |
Lessee, operating lease, existence of option to extend | true | |
Deferred lease liability | $ 11.9 | |
Tenant improvement incentive liability | 19.1 | |
Common area maintenance expense | $ 14.4 | 14.1 |
Rental expense | 46.5 | |
Contingent rental expense | $ 2.2 | |
Operating lease liabilities arising from obtaining operating lease assets | 21 | |
Operating leases, cash paid for amounts included in the measurement of operating lease liabilities | 48 | |
ASU 2016-02 [Member] | ||
Leases [Line Items] | ||
Deferred lease liability | 0 | |
Tenant improvement incentive liability | $ 1.2 | |
Minimum [Member] | Retail Stores [Member] | ||
Leases [Line Items] | ||
Lessee, operating lease, option to extend lease term | 1 year | |
Maximum [Member] | Retail Stores [Member] | ||
Leases [Line Items] | ||
Lessee, operating lease, option to extend lease term | 15 years | |
Maximum [Member] | Distribution Center [Member] | ||
Leases [Line Items] | ||
Lessee, operating lease, option to extend lease term | 20 years |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Line Items] | |
Total lease cost | $ 50,916 |
Selling, General and Administrative Expenses [Member] | |
Leases [Line Items] | |
Operating lease cost | 47,482 |
Variable lease cost | $ 3,434 |
Operating Leases - Schedule of
Operating Leases - Schedule of Lease Terms and Discount Rate (Detail) | Feb. 01, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years), Operating leases | 6 years 10 months 24 days |
Weighted-average discount rate, Operating leases | 6.50% |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Feb. 01, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 44,688 |
2021 | 47,009 |
2022 | 42,857 |
2023 | 39,760 |
2024 | 34,998 |
Thereafter | 97,894 |
Less: Imputed interest | 64,531 |
Operating lease liabilities | $ 242,675 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Maturities of Lease Liabilities (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Minimum operating lease payments for leases signed but not taken possession | $ 0 |
Operating Leases - Summary of F
Operating Leases - Summary of Future Minimum Rental Payments Under Non-Cancelable Operating Lease Obligations (Detail) $ in Thousands | Feb. 02, 2019USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 49,399 |
2020 | 46,512 |
2021 | 43,872 |
2022 | 39,369 |
2023 | 36,459 |
Thereafter | 110,376 |
Total | $ 325,987 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current | |||||||||||
U.S. Federal | $ 5,636 | $ 11,634 | $ 17,510 | ||||||||
State and local | 2,165 | 4,334 | 4,299 | ||||||||
Total current | 7,801 | 15,968 | 21,809 | ||||||||
Deferred tax benefit | |||||||||||
U.S. Federal | (8,681) | (3,513) | (28,374) | ||||||||
State and local | (2,142) | (806) | 1,126 | ||||||||
Total deferred tax benefit | (10,823) | (4,319) | (27,248) | ||||||||
Total income tax provision (benefit) | $ (3,154) | $ 1,763 | $ (3,069) | $ 1,438 | $ 1,237 | $ 2,488 | $ 3,952 | $ 3,972 | $ (3,022) | $ 11,649 | $ (5,439) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 33.80% |
State income taxes, net of federal tax effect | 0.30% | 6.30% | 4.70% |
Goodwill impairment | (19.10%) | 0.00% | 0.00% |
Tax rate changes | 0.00% | 0.00% | (48.30%) |
Acquisition-related costs | 0.00% | 0.00% | 1.20% |
Nondeductible equity-based compensation expense | 0.10% | 0.30% | 0.20% |
Charitable contributions | 0.10% | (0.60%) | (1.70%) |
Tax return to provision adjustments | 0.00% | 0.10% | (1.20%) |
Other | (0.10%) | 0.50% | 0.40% |
Effective tax rate | 2.30% | 27.60% | (10.90%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and (Liabilities) (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets | ||
Accrued expenses | $ 5,384 | $ 6,755 |
Start-up costs | 618 | 681 |
Lease liabilities | 64,068 | |
Total deferred tax assets | 70,070 | 7,436 |
Deferred tax liabilities | ||
Inventory | (2,496) | (1,921) |
Lease assets | (54,721) | |
Fixed assets | (15,341) | (13,413) |
Intangible assets | (27,826) | (33,137) |
Prepaid expenses | (720) | (807) |
Total deferred tax liabilities | (101,104) | (49,278) |
Net deferred tax liabilities | $ (31,034) | $ (41,842) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 12, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Operating Loss Carryforwards [Line Items] | ||||
U.S. Federal corporate income tax rate | 21.00% | 21.00% | 33.80% | |
Measurement period adjustments related to TCJA | $ 0 | |||
Tax credit carryforwards, valuation allowance | $ 0 | |||
Liability for uncertain tax positions | 0 | $ 0 | ||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | 0 | 0 | ||
Net operating loss carryforwards | 0 | 0 | ||
Additional federal tax payment | $ 1,100,000 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | $ 0 | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Numerator | |||||||||||
Net income attributable to common shareholders: | $ (128,567) | $ 30,525 | $ 55,365 | ||||||||
Denominator | |||||||||||
Weighted average number of common shares outstanding, basic: | 44,017,340 | 43,838,667 | 43,793,348 | 43,327,519 | 43,060,392 | 42,953,173 | 42,855,366 | 42,216,331 | 43,749,324 | 42,771,316 | 41,926,157 |
Dilutive effect of stock options and restricted shares: | 1,468,435 | 1,645,589 | |||||||||
Weighted average number of common shares outstanding, diluted: | 44,017,340 | 43,950,702 | 43,793,348 | 44,478,153 | 44,359,599 | 44,475,793 | 44,716,193 | 43,407,414 | 43,749,324 | 44,239,751 | 43,571,746 |
Net income per common share attributable to common shareholders, basic: | $ (0.88) | $ 0.05 | $ (2.21) | $ 0.10 | $ 0.05 | $ 0.16 | $ 0.24 | $ 0.27 | $ (2.94) | $ 0.71 | $ 1.32 |
Net income per common share attributable to common shareholders, diluted: | $ (0.88) | $ 0.05 | $ (2.21) | $ 0.10 | $ 0.05 | $ 0.15 | $ 0.23 | $ 0.26 | $ (2.94) | $ 0.69 | $ 1.27 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive equity awards excluded from the computation of diluted earnings per share | 3,025,275 | 922,425 | 318,875 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | Mar. 06, 2019$ / shares | Mar. 14, 2017shares | Feb. 01, 2020USD ($)Period$ / sharesshares | Feb. 02, 2019USD ($)$ / sharesshares | Feb. 03, 2018USD ($)$ / sharesshares | Apr. 01, 2019USD ($) | Mar. 19, 2019$ / shares | May 08, 2015shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted-average grant date fair value | $ / shares | $ 2.20 | |||||||
Number of units, granted | 796,870 | |||||||
Dividend declared (in dollars per share) | $ / shares | $ 1.15 | $ 1.15 | ||||||
Cash dividend paid | $ | $ 50.2 | |||||||
Dividend declared, date | Mar. 6, 2019 | |||||||
Dividend payable, date | Apr. 1, 2019 | |||||||
Shareholders of record, date | Mar. 19, 2019 | |||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Equity-based compensation expense | $ | $ 4.6 | $ 4 | $ 0.8 | |||||
Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized and available for future issuance | 11,724 | |||||||
Weighted-average grant date fair value | $ / shares | $ 0.38 | $ 1.74 | ||||||
Number of purchase period | Period | 1 | |||||||
Maximum compensation percentage | 10.00% | |||||||
Fair value of common stock purchase price percentage | 85.00% | |||||||
Proceeds from purchases of common stock | $ | $ 0.1 | |||||||
Number of common stock purchases | 139,432 | |||||||
RSA and RSU [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common interests units granted under the plan | 2,431,479 | |||||||
Number of units forfeited | 1,630,677 | |||||||
Total unrecognized compensation expense | $ | $ 6.2 | |||||||
Total unrecognized compensation expense to be recognized, weighted average service period | 2 years 6 months | |||||||
Weighted-average grant date fair value | $ / shares | $ 4.18 | $ 4.79 | $ 12.63 | |||||
Total fair value of restricted stock vested | $ | $ 5.1 | $ 0.9 | $ 0.5 | |||||
Maximum [Member] | Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized and available for future issuance | 200,000 | |||||||
Incentive Equity Plan [Member] | Topco [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued, restricted stock | 2,385,001 | |||||||
Incentive Equity Plan [Member] | Class A Common Interests [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized and available for future issuance | 0 | |||||||
Incentive Equity Plan [Member] | Class A Common Interests [Member] | Maximum [Member] | Topco [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 32,683,677 | |||||||
Incentive Equity Plan [Member] | Employees [Member] | Class A Common Interests [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Incentive Equity Plan [Member] | Nonemployees [Member] | Class A Common Interests [Member] | Topco [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common interests units granted under the plan | 0 | |||||||
2017 Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized and available for future issuance | 1,874,981 | |||||||
Common stock reserved for issuance | 4,567,264 | |||||||
2017 Plan [Member] | Restricted Share Awards ("RSAs") [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of units forfeited | 168,772 | 142,542 | ||||||
Dividend declared (in dollars per share) | $ / shares | $ 1.15 | |||||||
2017 Plan [Member] | Restricted Stock Units ("RSUs") [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | 1 year | ||||||
Vesting percentage | 25.00% | |||||||
2017 Plan [Member] | Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Total unrecognized compensation expense | $ | $ 0.2 | |||||||
Total unrecognized compensation expense to be recognized, weighted average service period | 1 year 3 months 18 days | |||||||
Weighted-average grant date fair value | $ / shares | $ 2.20 | $ 6.05 | ||||||
Number of units, granted | 0 | |||||||
2017 Plan [Member] | Maximum [Member] | Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Award expiration period | 10 years | |||||||
Employment Inducement Award [Member] | Restricted Stock Units ("RSUs") [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Shares available for grant | 302,644 | 835,040 | ||||||
Vesting percentage | 25.00% | |||||||
Employment Inducement Award [Member] | Non-qualified Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Shares available for grant | 796,870 | |||||||
Vesting percentage | 25.00% |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Restricted Stock Activity (Detail) - RSA and RSU [Member] - $ / shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Units, Beginning Balance | 2,883,395 | ||
Number of Units, Granted | 2,431,479 | ||
Number of Units, Vested | (1,238,838) | ||
Number of Units, Forfeited | (1,630,677) | ||
Number of Units, Ending Balance | 2,445,359 | 2,883,395 | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 3.21 | ||
Weighted Average Grant Date Fair Value, Granted | 4.18 | $ 4.79 | $ 12.63 |
Weighted Average Grant Date Fair Value, Vested | 4.08 | ||
Weighted Average Grant Date Fair Value, Forfeited | 4.57 | ||
Weighted Average Grant Date Fair Value, Ending Balance | $ 2.55 | $ 3.21 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options outstanding, Beginning Balance | 1,049,551 | 265,116 | |
Number of Options, Granted | 796,870 | ||
Number of Options, Forfeited | (945,097) | (12,435) | |
Number of Options outstanding, Ending Balance | 104,454 | 1,049,551 | |
Number of Options exercisable | 52,227 | ||
Options outstanding at February 3, 2018 | $ 3.13 | $ 6.05 | |
Weighted-Average Grant Date Fair Value, Granted | 2.20 | ||
Weighted-Average Grant Date Fair Value, Forfeited | 2.81 | 6.03 | |
Weighted-Average Grant Date Fair Value, Options outstanding, Ending Balance | 6.03 | 3.13 | |
Weighted-Average Grant Date Fair Value, Options exercisable | 6.03 | ||
Weighted-Average Exercise Price, Options outstanding, Beginning Balance | 6.91 | 13.26 | |
Weighted-Average Exercise Price, Granted | 4.90 | ||
Weighted-Average Exercise Price, Forfeited | 5.08 | 13.12 | |
Weighted-Average Exercise Price, Options outstanding, Ending Balance | 11.97 | $ 6.91 | |
Weighted-Average Exercise Price, Options exercisable | $ 11.97 | ||
Weighted-Average Remaining Contractual Terms, Options outstanding | 7 years 3 months 18 days | 9 years | |
Weighted-Average Remaining Contractual Terms, Options exercisable | 7 years 3 months 18 days | ||
Aggregate-Intrinsic Value, Options outstanding, Beginning Balance | [1] | $ 749,100 | |
Aggregate-Intrinsic Value, Options outstanding, Ending Balance | [1] | $ 749,100 | |
[1] | The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. |
Equity-Based Compensation - Fai
Equity-Based Compensation - Fair Values Estimated Using Black-Scholes Option-Pricing Model (Detail) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free rate | 2.14% | |
Expected term (in years) | 6 years 3 months | |
Expected volatility | 41.81% | |
Expected dividend yield | 0.00% | |
Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free rate | 1.59% | 2.63% |
Expected term (in years) | 1 year | 1 year |
Expected volatility | 45.11% | 42.54% |
Expected dividend yield | 0.00% | 0.00% |
Barter Arrangement - Additional
Barter Arrangement - Additional Information (Detail) - ASU 2014-09 [Member] - Advertising Barter Transactions [Member] - Evergreen Trading [Member] - USD ($) $ in Millions | 3 Months Ended | |
Feb. 01, 2020 | Nov. 02, 2019 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Transfer of inventory against media credit | $ 3.3 | |
Prepaid media asset | 2 | |
Transfer of inventory assets as a reduction of inventory offset by decrease in reserves | (2.5) | |
Gain recorded upon shipment of inventory | $ 1.3 | |
Unused media credits | $ 2 | |
Unused media credit term | 7 years |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - ABL Facility [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 16, 2020 |
Subsequent Event [Line Items] | ||
Credit facility available borrowing capacity | $ 5.3 | |
COVID-19 Pandemic [Member] | ||
Subsequent Event [Line Items] | ||
Cash drawn from facility | $ 33 | $ 33 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Historical Consolidated Statements of Income (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 168,064 | $ 166,085 | $ 180,744 | $ 176,452 | $ 170,902 | $ 174,106 | $ 179,713 | $ 181,541 | $ 691,345 | $ 706,262 | $ 698,145 |
Costs of goods sold | 68,030 | 59,137 | 75,403 | 60,196 | 63,081 | 58,643 | 63,058 | 61,200 | 262,766 | 245,982 | 234,065 |
Gross profit | 100,034 | 106,948 | 105,341 | 116,256 | 107,821 | 115,463 | 116,655 | 120,341 | 428,579 | 460,280 | 464,080 |
Selling, general and administrative expenses | 100,954 | 97,972 | 104,698 | 105,445 | 99,794 | 101,589 | 97,365 | 100,294 | 409,069 | 399,042 | 394,893 |
Impairment of goodwill | 31,000 | 88,428 | 119,428 | ||||||||
Impairment of indefinite-lived intangible assets | 5,100 | 7,000 | 12,100 | 12,100 | |||||||
Operating (loss) income | (37,020) | 8,976 | (94,785) | 10,811 | 8,027 | 13,874 | 19,290 | 20,047 | (112,018) | 61,238 | 69,187 |
Interest expense, net | 4,719 | 4,826 | 5,019 | 5,007 | 4,696 | 4,698 | 4,853 | 4,817 | 19,571 | 19,064 | 19,261 |
(Loss) income before provision for income taxes | (41,739) | 4,150 | (99,804) | 5,804 | 3,331 | 9,176 | 14,437 | 15,230 | (131,589) | 42,174 | 49,926 |
Income tax (benefit) provision | (3,154) | 1,763 | (3,069) | 1,438 | 1,237 | 2,488 | 3,952 | 3,972 | (3,022) | 11,649 | (5,439) |
Net (loss) income and total comprehensive income | $ (38,585) | $ 2,387 | $ (96,735) | $ 4,366 | $ 2,094 | $ 6,688 | $ 10,485 | $ 11,258 | $ (128,567) | $ 30,525 | $ 55,365 |
Net (loss) income per common share attributable to common shareholders: | |||||||||||
Basic | $ (0.88) | $ 0.05 | $ (2.21) | $ 0.10 | $ 0.05 | $ 0.16 | $ 0.24 | $ 0.27 | $ (2.94) | $ 0.71 | $ 1.32 |
Diluted | $ (0.88) | $ 0.05 | $ (2.21) | $ 0.10 | $ 0.05 | $ 0.15 | $ 0.23 | $ 0.26 | $ (2.94) | $ 0.69 | $ 1.27 |
Weighted average number of common shares outstanding: | |||||||||||
Basic | 44,017,340 | 43,838,667 | 43,793,348 | 43,327,519 | 43,060,392 | 42,953,173 | 42,855,366 | 42,216,331 | 43,749,324 | 42,771,316 | 41,926,157 |
Diluted | 44,017,340 | 43,950,702 | 43,793,348 | 44,478,153 | 44,359,599 | 44,475,793 | 44,716,193 | 43,407,414 | 43,749,324 | 44,239,751 | 43,571,746 |