Cover
Cover - shares | 6 Months Ended | |
Jul. 31, 2022 | Aug. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38555 | |
Entity Registrant Name | THE LOVESAC COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0514958 | |
Entity Address, Address Line One | Two Landmark Square | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901 | |
City Area Code | 888 | |
Local Phone Number | 636-1223 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | LOVE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,184,357 | |
Amendment Flag | false | |
Entity Central Index Key | 0001701758 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 30, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 17,652 | $ 92,392 |
Trade accounts receivable | 8,970 | 8,547 |
Merchandise inventories | 146,626 | 108,493 |
Prepaid expenses and other current assets | 36,011 | 15,726 |
Total Current Assets | 209,259 | 225,158 |
Property and equipment, net | 42,049 | 34,137 |
Operating lease right-of-use assets | 113,823 | 100,891 |
Other Assets | ||
Goodwill | 144 | 144 |
Intangible assets, net | 1,425 | 1,413 |
Deferred financing costs, net | 116 | 0 |
Deferred tax asset | 7,098 | 9,836 |
Total Other Assets | 8,783 | 11,393 |
Total Assets | 373,914 | 371,579 |
Current Liabilities | ||
Accounts payable | 34,238 | 33,247 |
Accrued expenses | 29,372 | 40,497 |
Payroll payable | 5,056 | 9,978 |
Customer deposits | 6,488 | 13,316 |
Current operating lease liabilities | 18,514 | 16,382 |
Sales taxes payable | 4,391 | 5,359 |
Total Current Liabilities | 98,059 | 118,779 |
Operating Lease Liabilities, long-term | 109,864 | 96,574 |
Line of Credit | 0 | 0 |
Total Liabilities | 207,923 | 215,353 |
Commitments and Contingencies (see Note 6) | ||
Stockholders’ Equity | ||
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of July 31, 2022 and January 30, 2022. | 0 | 0 |
Common Stock $.00001 par value, 40,000,000 shares authorized, 15,183,277 shares issued and outstanding as of July 31, 2022 and 15,123,338 shares issued and outstanding as of January 30, 2022. | 0 | 0 |
Additional paid-in capital | 174,510 | 173,762 |
Accumulated deficit | (8,519) | (17,536) |
Stockholders’ Equity | 165,991 | 156,226 |
Total Liabilities and Stockholders’ Equity | $ 373,914 | $ 371,579 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - $ / shares | Jul. 31, 2022 | Jan. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 15,183,277 | 15,123,338 |
Common stock, shares outstanding (in shares) | 15,183,277 | 15,123,338 |
Condensed Statements of Operati
Condensed Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 148,534 | $ 102,448 | $ 277,914 | $ 185,363 |
Cost of merchandise sold | 67,608 | 43,416 | 130,880 | 80,255 |
Gross profit | 80,926 | 59,032 | 147,034 | 105,108 |
Operating expenses | ||||
Selling, general and administration expenses | 48,866 | 35,385 | 93,767 | 66,103 |
Advertising and marketing | 19,088 | 13,036 | 34,989 | 23,716 |
Depreciation and amortization | 3,076 | 1,602 | 5,737 | 4,022 |
Total operating expenses | 71,030 | 50,023 | 134,493 | 93,841 |
Operating income | 9,896 | 9,009 | 12,541 | 11,267 |
Interest income (expense), net | 3 | (46) | (32) | (90) |
Net income before taxes | 9,899 | 8,963 | 12,509 | 11,177 |
Provision for income taxes | (2,777) | (515) | (3,492) | (668) |
Net income | $ 7,122 | $ 8,448 | $ 9,017 | $ 10,509 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.56 | $ 0.59 | $ 0.70 |
Diluted (in dollars per share) | $ 0.45 | $ 0.52 | $ 0.56 | $ 0.66 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 15,195,116 | 15,096,528 | 15,175,247 | 15,034,954 |
Diluted (in shares) | 16,004,061 | 16,100,927 | 16,032,731 | 16,039,352 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Accumulated Deficit |
Balance (in shares) at Jan. 31, 2021 | 15,011,556 | |||
Balance at Jan. 31, 2021 | $ 107,946 | $ 0 | $ 171,382 | $ (63,436) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 2,061 | 2,061 | ||
Equity based compensation | 654 | 654 | ||
Vested restricted stock units (in shares) | 4,868 | |||
Exercise of warrants (in shares) | 2,106 | |||
Exercise of warrants | 20 | 20 | ||
Balance (in shares) at May. 02, 2021 | 15,018,530 | |||
Balance at May. 02, 2021 | 110,681 | $ 0 | 172,056 | (61,375) |
Balance (in shares) at Jan. 31, 2021 | 15,011,556 | |||
Balance at Jan. 31, 2021 | 107,946 | $ 0 | 171,382 | (63,436) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 10,509 | |||
Exercise of warrants (in shares) | 0 | |||
Balance (in shares) at Aug. 01, 2021 | 15,105,826 | |||
Balance at Aug. 01, 2021 | $ 116,928 | $ 0 | 169,855 | (52,927) |
Balance (in shares) at May. 02, 2021 | 15,018,530 | |||
Balance at May. 02, 2021 | 110,681 | $ 0 | 172,056 | (61,375) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 8,448 | 8,448 | ||
Equity based compensation | 1,085 | 1,085 | ||
Vested restricted stock units (in shares) | 78,446 | |||
Exercise of warrants (in shares) | 8,850 | |||
Exercise of warrants | 84 | 84 | ||
Taxes paid for net share settlement of equity awards | (3,370) | (3,370) | ||
Balance (in shares) at Aug. 01, 2021 | 15,105,826 | |||
Balance at Aug. 01, 2021 | 116,928 | $ 0 | 169,855 | (52,927) |
Balance (in shares) at Jan. 30, 2022 | 15,123,338 | |||
Balance at Jan. 30, 2022 | 156,226 | $ 0 | 173,762 | (17,536) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,895 | 1,895 | ||
Equity based compensation | 1,163 | 1,163 | ||
Vested restricted stock units (in shares) | 1,704 | |||
Taxes paid for net share settlement of equity awards | (47) | (47) | ||
Balance (in shares) at May. 01, 2022 | 15,125,042 | |||
Balance at May. 01, 2022 | 159,237 | $ 0 | 174,878 | (15,641) |
Balance (in shares) at Jan. 30, 2022 | 15,123,338 | |||
Balance at Jan. 30, 2022 | 156,226 | $ 0 | 173,762 | (17,536) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 9,017 | |||
Balance (in shares) at Jul. 31, 2022 | 15,183,277 | |||
Balance at Jul. 31, 2022 | 165,991 | $ 0 | 174,510 | (8,519) |
Balance (in shares) at May. 01, 2022 | 15,125,042 | |||
Balance at May. 01, 2022 | 159,237 | $ 0 | 174,878 | (15,641) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 7,122 | 7,122 | ||
Equity based compensation | 1,034 | 1,034 | ||
Vested restricted stock units (in shares) | 58,235 | |||
Taxes paid for net share settlement of equity awards | (1,402) | (1,402) | ||
Balance (in shares) at Jul. 31, 2022 | 15,183,277 | |||
Balance at Jul. 31, 2022 | $ 165,991 | $ 0 | $ 174,510 | $ (8,519) |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2022 | Aug. 01, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 9,017 | $ 10,509 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization of property and equipment | 5,549 | 3,479 |
Amortization of other intangible assets | 188 | 543 |
Amortization of deferred financing fees | 71 | 45 |
Equity based compensation | 2,197 | 1,739 |
Non-cash operating lease cost | 8,711 | 9,012 |
Impairment of right of use lease asset | 0 | 554 |
Deferred income taxes | 2,738 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (423) | (2,850) |
Merchandise inventories | (38,133) | (24,575) |
Prepaid expenses and other current assets | (17,916) | 461 |
Accounts payable and accrued expenses | (16,024) | 2,830 |
Operating lease liabilities | (8,501) | (8,351) |
Customer deposits | (6,828) | 7,373 |
Net Cash (Used in) Provided by Operating Activities | (59,354) | 769 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (13,461) | (7,141) |
Payments for patents and trademarks | (200) | (215) |
Net Cash Used in Investing Activities | (13,661) | (7,356) |
Cash Flows from Financing Activities | ||
Payment of deferred financing costs | (276) | 0 |
Taxes paid for net share settlement of equity awards | (1,449) | (3,370) |
Proceeds from the exercise of warrants | 0 | 104 |
Net Cash Used in Financing Activities | (1,725) | (3,266) |
Net Change in Cash and Cash Equivalents | (74,740) | (9,853) |
Cash and Cash Equivalents - Beginning | 92,392 | 78,341 |
Cash and Cash Equivalents - Ending | 17,652 | 68,488 |
Supplemental Cash Flow Disclosures | ||
Cash paid for taxes | 9,393 | 670 |
Cash paid for interest | $ 34 | $ 32 |
Basis of Presentation and Opera
Basis of Presentation and Operations | 6 Months Ended |
Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND OPERATIONS | BASIS OF PRESENTATION AND OPERATIONS The balance sheet of The Lovesac Company (the “Company”, “we”, “us” or “our”) as of January 30, 2022, which has been derived from our audited financial statements as of and for the 52-week year ended January 30, 2022, and the accompanying interim unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Certain information and note disclosures normally included in annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), have been condensed or omitted pursuant to those rules and regulations. The financial information presented herein, which is not necessarily indicative of results to be expected for the full current fiscal year, reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the interim unaudited condensed financial statements. Such adjustments are of a normal, recurring nature. These condensed financial statements should be read in conjunction with the Company’s financial statements filed in its Annual Report on Form 10-K for the fiscal year ended January 30, 2022. Due to the seasonality of the Company’s business, with the majority of our activity occurring in the fourth quarter of each fiscal year, the results of operations for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021 are not necessarily indicative of results to be expected for the full fiscal year. Nature of Operations The Company is a technology driven company that designs, manufactures and sells unique, high quality furniture derived through its proprietary “Designed for Life” approach which results in products that are built to last a lifetime and designed to evolve as our customers’ lives do. The Company markets and sells its products through modern and efficient showrooms and, increasingly, through online sales directly at www.lovesac.com, supported by direct-to-consumer touch-feel points in the form of our own showrooms, which include our newly created mobile concierge and kiosks, as well as through shop-in-shops and online pop-up-shops with third party retailers. The Company was formed as a Delaware corporation on January 3, 2017, in connection with a corporate reorganization with SAC Acquisition LLC, a Delaware limited liability company (“SAC LLC”), the predecessor entity to the Company. COVID-19 In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic and, in the following weeks, the U.S. federal, state and local governments issued lockdown orders and related safety measures impacting the operations of our showrooms and consumer demand. Although there has been a general improvement in conditions, there continues to be significant uncertainties around the scope and severity of the pandemic, its impact on the global economy, including supply chains, and other business disruptions that may impact our operating results and financial condition. We continue to follow the guidance issued by federal, state and local governments and health organizations and have taken measures to protect the safety of our associates and customers. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jul. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTSThe Company has considered recently issued accounting pronouncements and they were considered to be not applicable or the adoption of such pronouncements will not have a material impact on its condensed financial statements. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET A summary of intangible assets follows: July 31, 2022 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,982 $ (1,737) $ 1,245 Trademarks 3 years 1,446 (1,266) 180 Other intangibles 5 years 840 (840) — Total $ 5,268 $ (3,843) $ 1,425 January 30, 2022 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,838 $ (1,626) $ 1,212 Trademarks 3 years 1,390 (1,189) 201 Other intangibles 5 years 840 (840) — Total $ 5,068 $ (3,655) $ 1,413 Amortization expense associated with intangible assets subject to amortization is included in depreciation and amortization expense on the accompanying condensed statements of operations. Amortization expense on other intangible assets was $0.1 million and $0.1 million and $0.2 million and $0.5 million for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. As of July 31, 2022, estimated future amortization expense associated with intangible assets subject to amortization is as follows: (amounts in thousands) Remainder of Fiscal 2023 $ 92 2024 272 2025 213 2026 182 2027 166 2028 124 Thereafter 376 $ 1,425 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income tax expense of $2.8 million and $0.5 million and $3.5 million and $0.7 million for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. The effective tax rate was 28.0% and 27.9% for the thirteen and twenty-six weeks ended July 31, 2022 as compared with 5.8% and 6.0% for the thirteen and twenty-six weeks ended August 1, 2021 . The effective tax rate varies from the 21% federal statutory tax rate for the thirteen and twenty-six weeks ended July 31, 2022 primarily due to state taxes . Comparatively, the effective tax rate for the thirteen and twenty-six weeks ended August 1, 2021 was lower than the 21% federal statutory tax rate primarily due to the release of a full valuation allowance on the Company’s net deferred tax assets. The valuation allowance was fully released as of the end of fiscal year 2022. |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Common Share | 6 Months Ended |
Jul. 31, 2022 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET INCOME PER COMMON SHARE | BASIC AND DILUTED NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding and common stock equivalents outstanding during the period. Diluted net income per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities where the average market price of the common stock exceeds the exercise prices for the respective periods. For the thirteen weeks ended July 31, 2022, the effects of 687,528 shares of common stock related to restricted stock units and warrants to purchase 281,750 shares of common stock were included in the diluted share calculation and there were 495,366 shares of common stock underlying stock options of potentially dilutive shares which may be issued in the future that were excluded from the diluted net income per share calculation because the effect of including these potentially dilutive shares was antidilutive. For the twenty-six weeks ended July 31, 2022, the effects of 687,528 shares of common stock related to restricted stock units, 495,366 shares of common stock underlying stock options and warrants to purchase 281,750 shares of common stock were included in the diluted share calculation and there were no anti-dilutive awards during this period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company leases its office, warehouse facilities and retail showrooms under operating lease agreements which expire at various dates through January 2033. The Company determines if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits from the use of that identified asset. Certain operating leases have renewal options and rent escalation clauses. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components for our showroom real estate leases in determining the lease payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, where applicable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. In addition, certain of our equipment lease agreements include variable lease payments, which are based on the usage of the underlying asset. The variable portion of payments are not included in the initial measurement of the asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. ASC 842 requires companies to use the rate implicit in the lease whenever that rate is readily determinable and if the interest rate is not readily determinable, then a lessee may use its incremental borrowing rate. Our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our ROU asset and lease liability, we determined our incremental borrowing rate by computing the rate of interest that we would have to pay to (i) borrow on a collateralized basis (ii) over a similar term (iii) at an amount equal to the total lease payments and (iv) in a similar economic environment. We determine incremental borrowing rates as of the first day of each fiscal year and analyze changes in interest rates and the Company's credit profile to determine if the rates need to be updated during the fiscal year. The lease term for all of our lease arrangements include the noncancelable period of the lease plus, if applicable, any additional periods covered by an option to extend the lease that is reasonably certain to be exercised by the Company. Our leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Some of our leases contain variable lease payments based on a Consumer Price Index or percentage of sales, which are excluded from the measurement of the lease liability. The Company’s lease terms and rates are as follows: July 31, Weighted average remaining lease term (in years) Operating Leases 7.3 Weighted average discount rate Operating Leases 4.01 % During the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, the Company recognized operating lease expense of $5.8 million and $4.5 million and $11.1 million and $9.0 million, respectively. In addition, during the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, we recognized $4.0 million and $3.0 million and $6.6 million and $4.3 million, respectively, for index-based changes in rent, maintenance, real estate taxes, insurance and other charges included in the lease as well as rental expenses related to short term leases. We did not recognize any impairment charges associated with showroom-level ROU assets during the thirteen and twenty-six weeks ended July 31, 2022. During the thirteen and twenty-six weeks ended August 1, 2021, we recognized impairment charges totaling $0.6 million associated with showroom-level ROU assets that are included as part of selling, general and administrative expenses. The following table discloses the location and amount of our operating lease costs within our condensed balance sheets: (amounts in thousands) Balance sheet location July 31, Assets Operating leases Operating lease right-of-use assets (non-current) $ 113,823 Liabilities Current: Operating leases Current operating lease liabilities $ 18,514 Noncurrent: Operating leases Operating lease liability, long term 109,864 Total lease liabilities $ 128,378 The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed balance sheet as of July 31, 2022: (amounts in thousands) Remainder 2023 $ 11,743 2024 23,011 2025 21,760 2026 19,671 2027 17,313 Thereafter 56,226 Total undiscounted future minimum lease payments 149,724 Less: imputed interest (21,346) Total present value of lease obligations 128,378 Less: current operating lease liability (18,514) Operating lease liability- long term $ 109,864 Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows: (amounts in thousands) For the twenty-six weeks ended July 31, 2022 For the twenty-six weeks ended August 1, 2021 Operating cash flow information: Amounts paid on operating lease liabilities $ 8,501 $ 8,351 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 21,302 $ 96,560 Severance Contingency The Company has various employment agreements with its senior level executives. A number of these agreements have severance provisions, ranging from 12 to 18 months of salary, in the event those employees are terminated without cause. The total amount of exposure to the Company under these agreements was $5.6 million at July 31, 2022 if all executives with employment agreements were terminated without cause and the full amount of severance was payable. Legal Contingency The Company is involved in various legal proceedings in the ordinary course of business. Management cannot presently predict the outcome of these matters, although management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a materially adverse effect on the Company’s condensed financial position, results of operations or cash flows. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The Company has a line of credit with Wells Fargo Bank, National Association (“Wells”). On March 25, 2022, the line of credit with Wells was amended and increased from $25.0 million to allow the Company to borrow up to $40.0 million, subject to borrowing base and availability restrictions, and will mature in March 2024. Borrowings are limited to 85% of eligible credit card receivables plus 90% of eligible wholesale receivables plus 86% of the net recovery percentage for the eligible inventory multiplied by the value of such eligible inventory of the Company for the period from December 16 of each year until October 14 of the immediately following year, with a seasonal increase to 90% of the net recovery percentage for the period from October 15 of each year until December 15 of such year, seasonal advance rate, minus applicable reserves established by Wells. The amended agreement contains a financial covenant that requires us to maintain undrawn availability under the credit facility of at least 10% of the lesser of (i) the aggregate commitments in the amount of $40.0 million and (ii) the amounts available under the credit facility based on eligible accounts receivable and inventory. As of July 31, 2022 and January 30, 2022, the Company’s borrowing availability under the line of credit with Wells was $36.0 million and $22.5 million, respectively. As of July 31, 2022 and January 30, 2022, there were no borrowings outstanding on this line of credit. Under the amended line of credit with Wells, the Company may elect that revolving loans bear interest at either a base rate or a term Secured Overnight Funds Rate ("SOFR") based rate, plus, in either case, a margin determined by reference to our quarterly average excess availability under the line of credit and ranging from 0.50% to 0.75% for borrowings accruing interest at a base rate and from 1.625% to 1.850% for borrowings accruing interest at term SOFR. Swing line loans will at all times accrue interest at a base rate plus the applicable margin. The lower margins described above will apply initially and will adjust thereafter from time to time based on the quarterly average excess availability under the line of credit. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Common Stock Warrants The following represents warrant activity during the twenty-six weeks ended July 31, 2022 and August 1, 2021: Average exercise Number of warrants Weighted average remaining Warrants Outstanding at January 31, 2021 $ 19.07 293,973 2.57 Warrants issued — — 0 Expired and canceled 9.83 (98) 0 Exercised 16.00 (12,125) 0.09 Outstanding at August 1, 2021 $ 19.20 281,750 1.91 Warrants Outstanding at January 30, 2022 $ 19.20 281,750 1.41 Warrants issued — — 0 Expired and canceled — — 0 Exercised — — 0.00 Outstanding at July 31, 2022 $ 19.20 281,750 0.91 In the twenty-six weeks ended August 1, 2021, a total of 5,625 warrants were exercised on a cashless basis, whereby the holders received fewer shares of common stock in lieu of a cash payment to the Company. Warrants exercised in the twenty-six weeks ended August 1, 2021, resulted in the issuance of 10,956 common shares. Equity Incentive Plan The Company adopted the Amended and Restated 2017 Equity Incentive Plan (the “2017 Equity Plan”) which provides for awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards and other stock-based awards. All awards shall be granted within 10 years from the effective date of the 2017 Equity Plan. On June 2, 2022, the stockholders of the Company approved of the Second Amended and Restated 2017 Equity Incentive Plan that increased the number of shares of common stock reserved for issuance thereunder by 550,000 shares of common stock. The number of shares of common stock reserved for issuance under the 2017 Equity Plan was 2,654,889 at July 31, 2022. Stock Options In June 2019, the Company granted 495,366 non-statutory stock options to certain officers of the Company with an option price of $38.10 per share. 100% of the stock options are subject to vesting on the third anniversary of the date of grant if the officers are still employed by the Company and the average closing price of the Company’s common stock for the prior 40 consecutive trading days has been at least $75 by the third anniversary of the grant. Both the employment and the market condition must be satisfied no later than June 5, 2024 or the options will terminate. These options were valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the options shall vest. The 495,366 stock options were modified in fiscal 2022 to extend the term of the options through June 5, 2024. This resulted in additional compensation of approximately $0.9 million of which, $0.3 million was recorded upon modification with the remaining expense to be recognized over the remaining expected term. The market condition was met on June 5, 2021, which was the date on which the average closing price of the Company’s common stock had been at least $75 for 40 consecutive trading days. The options vested and became exercisable on June 5, 2022 as the officers were still employed on that date. A summary of the status of our stock options as of July 31, 2022 and August 1, 2021, and the changes during the twenty-six weeks ended July 31, 2022 and August 1, 2021 is presented below: Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 31, 2021 495,366 $ 38.10 3.35 — Exercised — — Expired and canceled — — Outstanding at August 1, 2021 495,366 $ 38.10 2.85 35.32 Exercisable at the end of the period — — — — Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 30, 2022 495,366 $ 38.10 2.35 28.68 Granted — — Canceled and forfeited — — Outstanding at July 31, 2022 495,366 $ 38.10 1.85 1.89 Exercisable at the end of the period 495,366 $ 38.10 1.85 1.89 Restricted Stock Units A summary of the status of our unvested restricted stock units as of July 31, 2022 and August 1, 2021, and changes during the twenty-six weeks then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at January 31, 2021 655,558 $ 18.86 Granted 63,456 80.40 Forfeited (7,904) 19.27 Vested (153,089) 20.20 Unvested at August 1, 2021 558,021 $ 25.52 Number of shares Weighted average grant date fair value Unvested at January 30, 2022 533,333 $ 28.41 Granted 278,087 45.58 Forfeited (21,243) 23.12 Vested (102,649) 34.86 Unvested at July 31, 2022 687,528 $ 34.87 Equity based compensation expense was approximately $1.0 million and $1.1 million and $2.2 million and $1.7 million for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. The total unrecognized equity-based compensation cost related to unvested restricted unit awards was approximately $6.0 million as of July 31, 2022 and will be recognized in operations over a weighted average period of 2.33 years. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jul. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANIn February 2017, the Company established the TLC 401(k) Plan (the “401(k) Plan”) with Elective Deferrals beginning May 1, 2017. The 401(k) Plan calls for Elective Deferral Contributions, Safe Harbor Matching Contributions and Profit-Sharing Contributions. All associates of the Company will be eligible to participate in the 401(k) Plan as of the day of the month which is coincident with or next follows the date on which they attain age 21 and complete one month of service. Participants will be able to contribute up to 100% of their eligible compensation to the 401(k) Plan subject to limitations with the IRS. The Company's contributions to the 401(k) Plan were $0.3 million and $0.2 million and $0.7 million and $0.4 million for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has determined that the Company operates within a single reporting segment. The chief operating decision makers of the Company are the Chief Executive Officer, and President and Chief Operating Officer. The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas including economic characteristics, class of consumer, nature of products and distribution method and products are a singular group of products which make up over 95% of net sales. The following represents net sales by product offering for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively: Thirteen weeks ended Twenty Six weeks ended July 31, August 1, July 31, August 1, (amounts in thousands) Sactionals $ 136,513 $ 89,174 $ 251,515 $ 163,184 Sacs 9,908 11,716 21,835 18,857 Other 2,113 1,558 4,564 3,322 $ 148,534 $ 102,448 $ 277,914 $ 185,363 |
Barter Arrangements
Barter Arrangements | 6 Months Ended |
Jul. 31, 2022 | |
Barter Arrangements [Abstract] | |
BARTER ARRANGEMENTS | BARTER ARRANGEMENTS The Company has a bartering arrangement with a third-party vendor, whereby the Company will provide inventory in exchange for media credits. The Company exchanged $3.0 million and $3.9 million of inventory for certain media credits during the thirteen and twenty-six weeks ending July 31, 2022. The Company did not exchange any inventory for certain media credits during the thirteen and twenty-six weeks ending August 1, 2021. The contribution to the Company's gross profit from its bartering arrangement was $6.5 million and $8.2 million during the thirteen and twenty-six weeks ending July 31, 2022. There was no contribution to the Company's gross profit from its bartering arrangement during the thirteen and twenty-six weeks ending August 1, 2021. The Company had $14.1 million and $3.4 million of unused media credits remaining as of July 31, 2022 and January 30, 2022, respectively, which is included in “Prepaid and other current assets” on the accompanying condensed balance sheet. The Company accounts for barter transactions under ASC Topic No. 845 “Nonmonetary Transactions.” Barter transactions with commercial substance are recorded at the estimated fair value of the products exchanged, unless the products received have a more readily determinable estimated fair value. Revenue associated with barter transactions is recorded at the time of the exchange of the related assets. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company’s revenue consists substantially of product sales. The Company reports product sales net of discounts and recognizes them at the point in time when control transfers to the customer, which generally occurs upon our delivery to a third-party carrier. Estimated refunds for returns and allowances are recorded using our historical return patterns, adjusting for any changes in returns policies. The Company records estimated refunds for net sales returns on a monthly basis as a reduction of net sales and cost of sales on the condensed statements of operations and an increase in inventory and customers returns liability on the condensed balance sheets. There was a returns allowance recorded on the condensed balance sheet in the amount of $2.7 million and $2.0 million as of July 31, 2022 and January 30, 2022, respectively, which was included in accrued expenses and $0.6 million and $0.4 million as of July 31, 2022 and January 30, 2022, associated with sales returns included in merchandise inventories. In some cases, deposits are received before the Company transfers control, resulting in contract liabilities. These contract liabilities are reported as deposits on the Company’s condensed balance sheet. As of July 31, 2022 and January 30, 2022, the Company recorded under customer deposit liabilities the amount of $6.5 million and $13.3 million respectively. During the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, the Company recognized approximately $13.3 million and $6.0 million, respectively, related to our customer deposits. The Company offers its products through an inventory lean omni-channel platform that provides a seamless and meaningful experience to its customers in showrooms, which includes mobile concierge and kiosks, and through the internet. The Other channel predominantly represents sales through the use of online pop-up-shops and shop-in-shops that are staffed with associates trained to demonstrate and sell our product. The following represents net sales disaggregated by channel: Thirteen weeks ended Twenty-six weeks ended (amounts in thousands) July 31, August 1, July 31, August 1, Showrooms $ 92,426 $ 62,594 $ 173,680 $ 111,580 Internet 35,534 29,480 66,789 54,655 Other 20,574 10,374 37,445 19,128 $ 148,534 $ 102,448 $ 277,914 $ 185,363 The Company has no foreign operations and its sales to foreign countries was less than .01% of total net sales in both fiscal 2023 and 2022. The Company had no customers in fiscal 2023 or 2022 that comprise more than 10% of total net sales. See Note 10 for sales disaggregated by product . |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | A summary of intangible assets follows: July 31, 2022 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,982 $ (1,737) $ 1,245 Trademarks 3 years 1,446 (1,266) 180 Other intangibles 5 years 840 (840) — Total $ 5,268 $ (3,843) $ 1,425 January 30, 2022 (amounts in thousands) Estimated Life Gross Carrying Amount Accumulated Amortization Net carrying amount Patents 10 years $ 2,838 $ (1,626) $ 1,212 Trademarks 3 years 1,390 (1,189) 201 Other intangibles 5 years 840 (840) — Total $ 5,068 $ (3,655) $ 1,413 |
Schedule of estimated future amortization expense associated with intangible assets | As of July 31, 2022, estimated future amortization expense associated with intangible assets subject to amortization is as follows: (amounts in thousands) Remainder of Fiscal 2023 $ 92 2024 272 2025 213 2026 182 2027 166 2028 124 Thereafter 376 $ 1,425 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease terms and rates | The Company’s lease terms and rates are as follows: July 31, Weighted average remaining lease term (in years) Operating Leases 7.3 Weighted average discount rate Operating Leases 4.01 % |
Schedule of location and amount of operating lease costs within condensed consolidated balance sheets | The following table discloses the location and amount of our operating lease costs within our condensed balance sheets: (amounts in thousands) Balance sheet location July 31, Assets Operating leases Operating lease right-of-use assets (non-current) $ 113,823 Liabilities Current: Operating leases Current operating lease liabilities $ 18,514 Noncurrent: Operating leases Operating lease liability, long term 109,864 Total lease liabilities $ 128,378 |
Schedule to reconcile undiscounted future minimum lease payments | The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed balance sheet as of July 31, 2022: (amounts in thousands) Remainder 2023 $ 11,743 2024 23,011 2025 21,760 2026 19,671 2027 17,313 Thereafter 56,226 Total undiscounted future minimum lease payments 149,724 Less: imputed interest (21,346) Total present value of lease obligations 128,378 Less: current operating lease liability (18,514) Operating lease liability- long term $ 109,864 |
Schedule of supplemental cash flow information and non-cash activity related to operating leases | Supplemental Cash Flow information and non-cash activity related to our operating leases is as follows: (amounts in thousands) For the twenty-six weeks ended July 31, 2022 For the twenty-six weeks ended August 1, 2021 Operating cash flow information: Amounts paid on operating lease liabilities $ 8,501 $ 8,351 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 21,302 $ 96,560 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | The following represents warrant activity during the twenty-six weeks ended July 31, 2022 and August 1, 2021: Average exercise Number of warrants Weighted average remaining Warrants Outstanding at January 31, 2021 $ 19.07 293,973 2.57 Warrants issued — — 0 Expired and canceled 9.83 (98) 0 Exercised 16.00 (12,125) 0.09 Outstanding at August 1, 2021 $ 19.20 281,750 1.91 Warrants Outstanding at January 30, 2022 $ 19.20 281,750 1.41 Warrants issued — — 0 Expired and canceled — — 0 Exercised — — 0.00 Outstanding at July 31, 2022 $ 19.20 281,750 0.91 |
Schedule of stock option activity | A summary of the status of our stock options as of July 31, 2022 and August 1, 2021, and the changes during the twenty-six weeks ended July 31, 2022 and August 1, 2021 is presented below: Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 31, 2021 495,366 $ 38.10 3.35 — Exercised — — Expired and canceled — — Outstanding at August 1, 2021 495,366 $ 38.10 2.85 35.32 Exercisable at the end of the period — — — — Number of options Weighted average exercise price Weighted average remaining contractual life (in years) Average intrinsic value Outstanding at January 30, 2022 495,366 $ 38.10 2.35 28.68 Granted — — Canceled and forfeited — — Outstanding at July 31, 2022 495,366 $ 38.10 1.85 1.89 Exercisable at the end of the period 495,366 $ 38.10 1.85 1.89 |
Schedule of unvested restricted stock | A summary of the status of our unvested restricted stock units as of July 31, 2022 and August 1, 2021, and changes during the twenty-six weeks then ended, is presented below: Number of shares Weighted average grant date fair value Unvested at January 31, 2021 655,558 $ 18.86 Granted 63,456 80.40 Forfeited (7,904) 19.27 Vested (153,089) 20.20 Unvested at August 1, 2021 558,021 $ 25.52 Number of shares Weighted average grant date fair value Unvested at January 30, 2022 533,333 $ 28.41 Granted 278,087 45.58 Forfeited (21,243) 23.12 Vested (102,649) 34.86 Unvested at July 31, 2022 687,528 $ 34.87 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of operating segments | The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas including economic characteristics, class of consumer, nature of products and distribution method and products are a singular group of products which make up over 95% of net sales. The following represents net sales by product offering for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively: Thirteen weeks ended Twenty Six weeks ended July 31, August 1, July 31, August 1, (amounts in thousands) Sactionals $ 136,513 $ 89,174 $ 251,515 $ 163,184 Sacs 9,908 11,716 21,835 18,857 Other 2,113 1,558 4,564 3,322 $ 148,534 $ 102,448 $ 277,914 $ 185,363 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of sales disaggregated by channel | The following represents net sales disaggregated by channel: Thirteen weeks ended Twenty-six weeks ended (amounts in thousands) July 31, August 1, July 31, August 1, Showrooms $ 92,426 $ 62,594 $ 173,680 $ 111,580 Internet 35,534 29,480 66,789 54,655 Other 20,574 10,374 37,445 19,128 $ 148,534 $ 102,448 $ 277,914 $ 185,363 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of intangible assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Jan. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,268 | $ 5,068 |
Accumulated Amortization | (3,843) | (3,655) |
Net carrying amount | $ 1,425 | $ 1,413 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 10 years | 10 years |
Gross Carrying Amount | $ 2,982 | $ 2,838 |
Accumulated Amortization | (1,737) | (1,626) |
Net carrying amount | $ 1,245 | $ 1,212 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 3 years | 3 years |
Gross Carrying Amount | $ 1,446 | $ 1,390 |
Accumulated Amortization | (1,266) | (1,189) |
Net carrying amount | $ 180 | $ 201 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Life | 5 years | 5 years |
Gross Carrying Amount | $ 840 | $ 840 |
Accumulated Amortization | (840) | (840) |
Net carrying amount | $ 0 | $ 0 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of other intangible assets | $ 100 | $ 100 | $ 188 | $ 543 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of estimated future amortization expense associated with intangible assets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of Fiscal 2023 | $ 92 | |
2024 | 272 | |
2025 | 213 | |
2026 | 182 | |
2027 | 166 | |
2028 | 124 | |
Thereafter | 376 | |
Net carrying amount | $ 1,425 | $ 1,413 |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Federal and state income tax expense | $ 2,777 | $ 515 | $ 3,492 | $ 668 |
Effective tax rate | 28% | 5.80% | 27.90% | 6% |
Basic and Diluted Net Income _2
Basic and Diluted Net Income Per Common Share - Additional information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive (in shares) | 687,528 | 558,021 | 687,528 | 558,021 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive (in shares) | 495,366 | 495,366 | 495,366 | 495,366 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive (in shares) | 281,750 | 281,750 | 281,750 | 281,750 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of lease terms and rates (Details) | Jul. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, weighted average remaining lease term (in years) | 7 years 3 months 18 days |
Operating leases, weighted average discount rate | 4.01% |
Commitments and Contingencies_2
Commitments and Contingencies - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | |
Related Party Transaction [Line Items] | ||||
Operating lease expense | $ 5.8 | $ 4.5 | $ 11.1 | $ 9 |
Other rental expenses | 4 | 3 | 6.6 | 4.3 |
Impairment charges | $ 0.6 | $ 0.6 | ||
Severance contingency, maximum amount payable | $ 5.6 | $ 5.6 | ||
Minimum | ||||
Related Party Transaction [Line Items] | ||||
Length of severance pay | 12 months | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Length of severance pay | 18 months |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of location and amount of operating lease costs within condensed consolidated balance sheets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 113,823 | $ 100,891 |
Current operating lease liabilities | 18,514 | 16,382 |
Operating lease liability, long term | 109,864 | $ 96,574 |
Total present value of lease obligations | $ 128,378 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule to reconcile undiscounted future minimum lease payments (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder 2023 | $ 11,743 | |
2024 | 23,011 | |
2025 | 21,760 | |
2026 | 19,671 | |
2027 | 17,313 | |
Thereafter | 56,226 | |
Total undiscounted future minimum lease payments | 149,724 | |
Less: imputed interest | (21,346) | |
Total present value of lease obligations | 128,378 | |
Less: current operating lease liability | (18,514) | $ (16,382) |
Operating Lease Liabilities, long-term | $ 109,864 | $ 96,574 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of supplemental cash flow information and non-cash activity related to operating leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2022 | Aug. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Amounts paid on operating lease liabilities | $ 8,501 | $ 8,351 |
Right-of-use assets obtained in exchange for lease obligations | $ 21,302 | $ 96,560 |
Financing Arrangements - Additi
Financing Arrangements - Additional information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Mar. 25, 2022 | Jul. 31, 2022 | Mar. 24, 2022 | Jan. 30, 2022 | |
Financing Arrangements (Details) [Line Items] | ||||
Borrowings amount | $ 40 | $ 36 | $ 25 | $ 22.5 |
Eligible credit card receivables percentage | 85% | |||
Eligible wholesale receivables percentage | 86% | |||
Net recovery percentage | 90% | |||
Increase the net recovery percentage | 90% | |||
Minimum undrawn availability | 10% | |||
Minimum | Base Rate | ||||
Financing Arrangements (Details) [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Financing Arrangements (Details) [Line Items] | ||||
Basis spread on variable rate | 1.625% | |||
Maximum | Base Rate | ||||
Financing Arrangements (Details) [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Financing Arrangements (Details) [Line Items] | ||||
Basis spread on variable rate | 1.85% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of warrant activity (Details) - $ / shares | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 31, 2022 | Aug. 01, 2021 | Jan. 30, 2022 | Jan. 31, 2021 | |
Number of warrants | |||||
Number of warrants, warrants issued (in shares) | 495,366 | ||||
Warrants Activity | |||||
Class of Warrant or Right [Line Items] | |||||
Average exercise price, warrants outstanding, beginning balance (in dollars per share) | $ 19.20 | $ 19.07 | $ 19.07 | ||
Average exercise price, warrants issued (in dollars per share) | 0 | 0 | |||
Average exercise price, expired and canceled (in dollars per share) | 0 | 9.83 | |||
Average exercise price, exercised (in dollars per share) | 0 | 16 | |||
Average exercise price, warrants outstanding, ending balance (in dollars per share) | $ 19.20 | $ 19.20 | $ 19.20 | $ 19.07 | |
Number of warrants | |||||
Number of warrants, warrants outstanding, beginning balance (in shares) | 281,750 | 293,973 | 293,973 | ||
Number of warrants, warrants issued (in shares) | 0 | 0 | |||
Number of warrants, expired and canceled (in shares) | 0 | (98) | |||
Number of warrants, exercised (in shares) | 0 | (12,125) | |||
Number of warrants, warrants outstanding, ending balance (in shares) | 281,750 | 281,750 | 281,750 | 293,973 | |
Weighted average remaining contractual life (in years), warrants outstanding, beginning balance | 10 months 28 days | 1 year 10 months 28 days | 1 year 4 months 28 days | 2 years 6 months 25 days | |
Weighted average remaining contractual life, warrants issued (in years) | 0 years | 0 years | |||
Weighted average remaining contractual life, expired and canceled (in years) | 0 years | 0 years | |||
Weighted average remaining contractual life, exercised (in years) | 0 years | 1 month 2 days | |||
Weighted average remaining contractual life (in years), warrants outstanding, ending balance | 10 months 28 days | 1 year 10 months 28 days | 1 year 4 months 28 days | 2 years 6 months 25 days |
Stockholders' Equity - Addition
Stockholders' Equity - Additional information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 05, 2021 trading_day $ / shares | Jun. 30, 2019 USD ($) trading_day $ / shares shares | Jul. 31, 2022 USD ($) shares | Aug. 01, 2021 USD ($) | Jul. 31, 2022 USD ($) shares | Aug. 01, 2021 USD ($) shares | Jun. 02, 2022 shares | |
Class of Stock [Line Items] | |||||||
Cashless warrant exercised (in shares) | 5,625 | ||||||
Non statutory stock options granted (in shares) | 495,366 | ||||||
Stock option price exercise (in dollars per share) | $ / shares | $ 38.10 | ||||||
Stock options are subject to vesting percentage | 100% | ||||||
Consecutive trading days | trading_day | 40 | 40 | |||||
Stock price (in dollars per share) | $ / shares | $ 75 | $ 75 | |||||
Stock option modified (in shares) | 495,366 | ||||||
Additional compensation | $ | $ 0.9 | ||||||
Modification and remaining expense was recognized | $ | $ 0.3 | ||||||
Equity based compensation expense | $ | $ 1 | $ 1.1 | $ 2.2 | $ 1.7 | |||
Total unrecognized equity based compensation cost related to unvested stock option and restricted unit awards | $ | $ 6 | $ 6 | |||||
Weighted average period | 2 years 3 months 29 days | ||||||
2017 Equity Incentive Plan | |||||||
Class of Stock [Line Items] | |||||||
Granted term | 10 years | ||||||
Common stock reserved issuance (in shares) | 2,654,889 | 2,654,889 | 550,000 | ||||
Warrant | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common shares (in shares) | 10,956 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of stock option activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jan. 30, 2022 | Jan. 31, 2021 | |
Number of options | ||||
Number of options, outstanding, beginning balance (in shares) | 495,366 | 495,366 | 495,366 | |
Number of options, exercised (in shares) | 0 | |||
Number of options, expired and canceled (in shares) | 0 | |||
Number of options, granted (in shares) | 0 | |||
Number of options, canceled and forfeited (in shares) | 0 | |||
Number of options, outstanding, ending balance (in shares) | 495,366 | 495,366 | 495,366 | 495,366 |
Number of options, exercisable at the end of the period (in shares) | 495,366 | 0 | ||
Weighted average exercise price | ||||
Weighted average exercise price, outstanding, beginning balance (in dollars per share) | $ 38.10 | $ 38.10 | $ 38.10 | |
Weighted average exercise price, granted (in dollars per share) | 0 | 0 | ||
Weighted average exercise price, canceled and forfeited (in dollars per share) | 0 | 0 | ||
Weighted average exercise price, outstanding, ending balance (in dollars per share) | 38.10 | 38.10 | $ 38.10 | $ 38.10 |
Weighted average exercise price, exercisable at the end of the period (in dollars per share) | $ 38.10 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual life, outstanding (in years) | 1 year 10 months 6 days | 2 years 10 months 6 days | 2 years 4 months 6 days | 3 years 4 months 6 days |
Weighted average remaining contractual life (in years), exercisable at the end of the period | 1 year 10 months 6 days | |||
Average intrinsic value, outstanding, beginning balance (in dollars per share) | $ 28.68 | $ 0 | $ 0 | |
Average intrinsic value, outstanding, ending balance (in dollars per share) | 1.89 | 35.32 | $ 28.68 | $ 0 |
Average intrinsic value, exercisable at the end of the period (in dollars per share) | $ 1.89 | $ 0 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of unvested restricted stock (Details) - Restricted stock units - $ / shares | 6 Months Ended | |
Jul. 31, 2022 | Aug. 01, 2021 | |
Number of shares | ||
Number of shares, unvested, beginning balance (in shares) | 533,333 | 655,558 |
Number of shares, granted (in shares) | 278,087 | 63,456 |
Number of shares, forfeited (in shares) | (21,243) | (7,904) |
Number of shares, vested (in shares) | (102,649) | (153,089) |
Number of shares, unvested, ending balance (in shares) | 687,528 | 558,021 |
Weighted average grant date fair value | ||
Weighted average grant date fair value, unvested, beginning balance (in dollars per share) | $ 28.41 | $ 18.86 |
Weighted average grant date fair value, granted (in dollars per share) | 45.58 | 80.40 |
Weighted average grant date fair value, forfeited (in dollars per share) | 23.12 | 19.27 |
Weighted average grant date fair value, vested (in dollars per share) | 34.86 | 20.20 |
Weighted average grant date fair value, unvested, ending balance (in dollars per share) | $ 34.87 | $ 25.52 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | |
Retirement Benefits [Abstract] | ||||
Contributions plan, percentage | 100% | |||
Employer contribution plan, cost | $ 0.3 | $ 0.2 | $ 0.7 | $ 0.4 |
Segment Information - Schedule
Segment Information - Schedule of operating segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 USD ($) | Aug. 01, 2021 USD ($) | Jul. 31, 2022 USD ($) segment | Aug. 01, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reporting segments | segment | 1 | |||
Operating segments, percentage of net sales | 95% | 95% | ||
Net sales | $ 148,534 | $ 102,448 | $ 277,914 | $ 185,363 |
Sactionals | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 136,513 | 89,174 | 251,515 | 163,184 |
Sacs | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,908 | 11,716 | 21,835 | 18,857 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,113 | $ 1,558 | $ 4,564 | $ 3,322 |
Barter Arrangements - Additiona
Barter Arrangements - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | Jan. 30, 2022 | |
Barter Arrangements [Abstract] | |||||
Inventory exchanged for media credits | $ 3,000,000 | $ 0 | $ 3,900,000 | $ 0 | |
Gross profit from bartering arrangement | 6,500,000 | $ 0 | 8,200,000 | $ 0 | |
Unused media credits | $ 14,100,000 | $ 14,100,000 | $ 3,400,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | Jan. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Returns allowance | $ 2.7 | $ 2.7 | $ 2 | ||
Accrued expenses | 0.6 | 0.6 | 0.4 | ||
Customer deposit liabilities | 6.5 | 6.5 | $ 13.3 | ||
Recognized related to customer deposits | $ 13.3 | $ 13.3 | $ 6 | $ 6 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of sales disaggregated by channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Aug. 01, 2021 | Jul. 31, 2022 | Aug. 01, 2021 | Jan. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Sales | $ 148,534 | $ 102,448 | $ 277,914 | $ 185,363 | |
Foreign Countries | Geographic Concentration Risk | Revenue Benchmark | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration of sales (less than) | 0.01% | 0.01% | |||
Showrooms | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | $ 92,426 | 62,594 | 173,680 | 111,580 | |
Internet | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 35,534 | 29,480 | 66,789 | 54,655 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | $ 20,574 | $ 10,374 | $ 37,445 | $ 19,128 |