Cover
Cover - shares | 6 Months Ended | |
Jul. 29, 2023 | Sep. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40571 | |
Entity Registrant Name | TORRID HOLDINGS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-3517567 | |
Entity Address, Address Line One | 18501 East San Jose Avenue | |
Entity Address, City or Town | City of Industry | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91748 | |
City Area Code | (626) | |
Local Phone Number | 667-1002 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CURV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,071,462 | |
Entity Central Index Key | 0001792781 | |
Current Fiscal Year End Date | --01-28 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 18,544 | $ 13,569 |
Restricted cash | 366 | 366 |
Inventory | 157,819 | 180,055 |
Prepaid expenses and other current assets | 23,958 | 20,050 |
Prepaid income taxes | 4,082 | 2,081 |
Total current assets | 204,769 | 216,121 |
Property and equipment, net | 102,605 | 113,613 |
Operating lease right-of-use assets | 160,353 | 177,179 |
Deposits and other noncurrent assets | 12,956 | 8,650 |
Deferred tax assets | 3,301 | 3,301 |
Intangible asset | 8,400 | 8,400 |
Total assets | 492,384 | 527,264 |
Current liabilities: | ||
Accounts payable | 62,339 | 76,207 |
Accrued and other current liabilities | 106,721 | 108,847 |
Operating lease liabilities | 40,651 | 45,008 |
Borrowings under credit facility | 0 | 8,380 |
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs | 16,144 | 16,144 |
Due to related parties | 10,522 | 12,741 |
Total current liabilities | 236,377 | 267,327 |
Noncurrent operating lease liabilities | 153,733 | 172,103 |
Total term loan, net of current portion and unamortized original issue discount and debt financing costs | 296,625 | 304,697 |
Deferred compensation plan liabilities | 4,854 | 4,246 |
Other noncurrent liabilities | 8,452 | 9,115 |
Total liabilities | 700,041 | 757,488 |
Commitments and contingencies (Note 15) | ||
Stockholders' deficit | ||
Common shares: $0.01 par value; 1,000,000,000 shares authorized; 104,044,344 shares issued and outstanding at July 29, 2023; 103,774,813 shares issued and outstanding at January 28, 2023 | 1,041 | 1,038 |
Additional paid-in capital | 132,275 | 128,205 |
Accumulated deficit | (340,769) | (359,206) |
Accumulated other comprehensive loss | (204) | (261) |
Total stockholders' deficit | (207,657) | (230,224) |
Total liabilities and stockholders' deficit | $ 492,384 | $ 527,264 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jul. 29, 2023 | Jan. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common shares, issued (in shares) | 104,044,344 | 103,774,813 |
Common shares, outstanding (in shares) | 104,044,344 | 103,774,813 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 289,144 | $ 353,522 | $ 582,998 | $ 686,715 |
Cost of goods sold | 186,467 | 222,030 | 369,679 | 425,293 |
Gross profit | 102,677 | 131,492 | 213,319 | 261,422 |
Selling, general and administrative expenses | 69,591 | 78,574 | 140,819 | 150,789 |
Marketing expenses | 12,898 | 13,502 | 26,249 | 31,476 |
Income from operations | 20,188 | 39,416 | 46,251 | 79,157 |
Interest expense | 9,606 | 6,697 | 19,074 | 12,961 |
Interest income, net of other (income) expense | (89) | 48 | (29) | 76 |
Income before provision for income taxes | 10,671 | 32,671 | 27,206 | 66,120 |
Provision for income taxes | 4,042 | 9,961 | 8,769 | 19,344 |
Net income | 6,629 | 22,710 | 18,437 | 46,776 |
Comprehensive income: | ||||
Net income | 6,629 | 22,710 | 18,437 | 46,776 |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | 227 | 25 | 57 | (15) |
Other comprehensive loss | 227 | 25 | 57 | (15) |
Comprehensive income | $ 6,856 | $ 22,735 | $ 18,494 | $ 46,761 |
Net earnings per share: | ||||
Basic (in USD per share) | $ 0.06 | $ 0.22 | $ 0.18 | $ 0.45 |
Diluted (in USD per share) | $ 0.06 | $ 0.22 | $ 0.18 | $ 0.44 |
Weighted average number of shares: | ||||
Basic (in shares) | 103,930 | 103,836 | 103,865 | 105,031 |
Diluted (in shares) | 104,172 | 103,953 | 104,093 | 105,126 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (UNAUDITED) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Jan. 29, 2022 | 107,858,000 | ||||
Ending balance at Jan. 29, 2022 | $ (258,319) | $ 1,078 | $ 118,286 | $ (377,759) | $ 76 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 24,066 | 24,066 | |||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares) | 39,000 | ||||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units | (178) | (178) | |||
Share-based compensation | 2,480 | 2,480 | |||
Repurchase and retirement of common stock (in shares) | (2,919,000) | ||||
Repurchase and retirement of common stock | (22,865) | $ (29) | (22,836) | ||
Other comprehensive loss | (40) | (40) | |||
Beginning balance (in shares) at Apr. 30, 2022 | 104,978,000 | ||||
Ending balance at Apr. 30, 2022 | (254,856) | $ 1,049 | 120,588 | (376,529) | 36 |
Beginning balance (in shares) at Jan. 29, 2022 | 107,858,000 | ||||
Ending balance at Jan. 29, 2022 | (258,319) | $ 1,078 | 118,286 | (377,759) | 76 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 46,776 | ||||
Repurchase and retirement of common stock (in shares) | (4,464,367) | ||||
Repurchase and retirement of common stock | $ (31,700) | ||||
Other comprehensive loss | (15) | ||||
Beginning balance (in shares) at Jul. 30, 2022 | 103,601,000 | ||||
Ending balance at Jul. 30, 2022 | (238,656) | $ 1,036 | 122,886 | (362,639) | 61 |
Beginning balance (in shares) at Apr. 30, 2022 | 104,978,000 | ||||
Ending balance at Apr. 30, 2022 | (254,856) | $ 1,049 | 120,588 | (376,529) | 36 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 22,710 | 22,710 | |||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares) | 74,000 | ||||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units | (226) | $ 1 | (227) | ||
Issuance of common shares related to employee stock purchase plan (in shares) | 95,000 | ||||
Issuance of common shares related to employee stock purchase plan | 351 | $ 1 | 350 | ||
Share-based compensation | $ 2,175 | 2,175 | |||
Repurchase and retirement of common stock (in shares) | (1,545,811) | (1,546,000) | |||
Repurchase and retirement of common stock | $ (8,835) | $ (15) | (8,820) | ||
Other comprehensive loss | 25 | 25 | |||
Beginning balance (in shares) at Jul. 30, 2022 | 103,601,000 | ||||
Ending balance at Jul. 30, 2022 | $ (238,656) | $ 1,036 | 122,886 | (362,639) | 61 |
Beginning balance (in shares) at Jan. 28, 2023 | 103,774,813 | 103,775,000 | |||
Ending balance at Jan. 28, 2023 | $ (230,224) | $ 1,038 | 128,205 | (359,206) | (261) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,808 | 11,808 | |||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares) | 53,000 | ||||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units | (123) | $ 1 | (124) | ||
Share-based compensation | 2,377 | 2,377 | |||
Other comprehensive loss | (170) | (170) | |||
Beginning balance (in shares) at Apr. 29, 2023 | 103,828,000 | ||||
Ending balance at Apr. 29, 2023 | $ (216,332) | $ 1,039 | 130,458 | (347,398) | (431) |
Beginning balance (in shares) at Jan. 28, 2023 | 103,774,813 | 103,775,000 | |||
Ending balance at Jan. 28, 2023 | $ (230,224) | $ 1,038 | 128,205 | (359,206) | (261) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 18,437 | ||||
Repurchase and retirement of common stock (in shares) | 0 | ||||
Repurchase and retirement of common stock | $ 0 | ||||
Other comprehensive loss | $ 57 | ||||
Beginning balance (in shares) at Jul. 29, 2023 | 104,044,344 | 104,044,000 | |||
Ending balance at Jul. 29, 2023 | $ (207,657) | $ 1,041 | 132,275 | (340,769) | (204) |
Beginning balance (in shares) at Apr. 29, 2023 | 103,828,000 | ||||
Ending balance at Apr. 29, 2023 | (216,332) | $ 1,039 | 130,458 | (347,398) | (431) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,629 | 6,629 | |||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units (in shares) | 121,000 | ||||
Issuance of common shares and withholding tax payments related to vesting of restricted stock awards and restricted stock units | $ (63) | $ 1 | (64) | ||
Issuance of common shares related to employee stock purchase plan (in shares) | 95,000 | ||||
Issuance of common shares related to employee stock purchase plan | $ 220 | $ 1 | 219 | ||
Share-based compensation | $ 1,662 | 1,662 | |||
Repurchase and retirement of common stock (in shares) | 0 | ||||
Repurchase and retirement of common stock | $ 0 | ||||
Other comprehensive loss | $ 227 | 227 | |||
Beginning balance (in shares) at Jul. 29, 2023 | 104,044,344 | 104,044,000 | |||
Ending balance at Jul. 29, 2023 | $ (207,657) | $ 1,041 | $ 132,275 | $ (340,769) | $ (204) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 18,437 | $ 46,776 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Write down of inventory | 1,523 | 1,363 |
Operating right-of-use assets amortization | 20,119 | 20,672 |
Depreciation and other amortization | 19,077 | 18,891 |
Share-based compensation | 4,396 | 4,655 |
Other | (1,437) | 82 |
Changes in operating assets and liabilities: | ||
Inventory | 20,738 | (11,585) |
Prepaid expenses and other current assets | (3,908) | (2,863) |
Prepaid income taxes | (2,001) | 4,661 |
Deposits and other noncurrent assets | (4,386) | (1,539) |
Accounts payable | (13,291) | 883 |
Accrued and other current liabilities | (389) | (27,116) |
Operating lease liabilities | (25,278) | (20,628) |
Other noncurrent liabilities | (294) | 4,156 |
Deferred compensation | 608 | (1,031) |
Payments to related parties | (2,219) | 5,646 |
Income taxes payable | 0 | 1,270 |
Net cash provided by operating activities | 31,695 | 44,293 |
INVESTING ACTIVITIES | ||
Purchase of assets | (9,593) | (11,444) |
Net cash used in investing activities | (9,593) | (11,444) |
FINANCING ACTIVITIES | ||
Proceeds from revolving credit facility | 346,280 | 423,900 |
Principal payments on revolving credit facility | (354,660) | (417,950) |
Payments for Repurchase of Common Stock | 0 | (31,700) |
Principal payments on term loan | (8,750) | (13,125) |
Proceeds from issuances under share-based compensation plans | 200 | 463 |
Withholding tax payments related to vesting of restricted stock units and awards | (188) | (414) |
Net cash used in financing activities | (17,118) | (38,826) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | (9) | (7) |
Increase (decrease) in cash, cash equivalents and restricted cash | 4,975 | (5,984) |
Cash, cash equivalents and restricted cash at beginning of period | 13,935 | 29,287 |
Cash, cash equivalents and restricted cash at beginning of period | 18,910 | 23,303 |
SUPPLEMENTAL INFORMATION | ||
Cash paid during the period for interest related to the revolving credit facility and term loan | 15,469 | 13,637 |
Cash paid during the period for income taxes | 10,759 | 13,413 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Property and equipment purchases included in accounts payable and accrued liabilities | $ 1,722 | $ 3,578 |
Basis of Presentation and Descr
Basis of Presentation and Description of the Business | 6 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Description of the Business | Basis of Presentation and Description of the Business Corporate Structure Torrid Holdings Inc. is a Delaware corporation formed on October 29, 2019 and capitalized on February 20, 2020. Sycamore Partners Management, L.P. ("Sycamore") owns a majority of the voting power of Torrid Holdings Inc.'s outstanding common stock. Torrid Parent Inc. is a Delaware corporation formed on June 4, 2019 and is a wholly owned subsidiary of Torrid Holdings Inc. Torrid Intermediate LLC, formerly known as Torrid Inc., is a Delaware limited liability company formed on June 18, 2019 and a wholly owned subsidiary of Torrid Parent Inc. Torrid LLC is a wholly owned subsidiary of Torrid Intermediate LLC. Substantially all of Torrid Holdings Inc.'s financial position, operations and cash flows are generated through its wholly owned indirect subsidiary, Torrid LLC. Throughout these financial statements, the terms "Torrid," "we," "us," "our," the "Company" and similar references refer to Torrid Holdings Inc. and its consolidated subsidiaries. Fiscal Year Our fiscal year ends on the Saturday nearest to January 31 and each fiscal year is generally comprised of four 13-week quarters (although in years with 53 weeks, the fourth quarter is comprised of 14 weeks). Fiscal year 2023 is a 53-week year and fiscal year 2022 was a 52-week year. Fiscal years are identified according to the calendar year in which they begin. For example, references to "fiscal year 2023" or similar references refer to the fiscal year ending February 3, 2024. References to the second quarter of fiscal years 2023 and 2022 and to the three- and six-month periods ended July 29, 2023 and July 30, 2022, respectively, refer to the 13- and 26-week periods then ended. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial information. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. Operating results for the three- and six-month periods ended July 29, 2023 and July 30, 2022 are not necessarily indicative of the results that may be expected for any future interim periods, the fiscal year ending February 3, 2024, or for any future fiscal year. The condensed consolidated balance sheet information at January 28, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements and related footnotes should be read in conjunction with our audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023. The unaudited condensed consolidated financial statements include Torrid and those of our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Description of Business We are a direct-to-consumer brand of apparel, intimates and accessories in North America aimed at fashionable women who are curvy and wear sizes 10 to 30. We generate revenues primarily through our e-Commerce platform www.torrid.com and our stores in the United States of America, Puerto Rico and Canada. Segment Reporting We have determined that we have one reportable segment, which includes the operation of our e-Commerce platform and stores. The single segment was identified based on how the Chief Operating Decision Maker, who we have determined to be our Chief Executive Officer, manages and evaluates performance and allocates resources. Revenues and long-lived assets related to our operations in Canada and Puerto Rico during the three- and six-month periods ended July 29, 2023 and July 30, 2022, and as of the end of the same periods, were not material , and therefore are not reported separately from domestic revenues and long-lived assets. Store Pre-Opening Costs Costs incurred in connection with the opening of new stores, store remodels or relocations are expensed as incurred in selling, general and administrative expenses in our condensed consolidated statements of operations and comprehensive income. We incurred $0.3 million and $0.6 million of pre-opening costs during the three- and six-month periods ended July 29, 2023, respectively. We incurred $0.3 million and $0.5 million of pre-opening costs during the three- and six-month periods ended July 30, 2022, respectively. Change in Accounting Principle In the fourth quarter of fiscal year 2022, we made a voluntary change in our accounting policy regarding the classification of royalties, profit-sharing and marketing and promotional funds ("PLCC Funds") we receive pursuant to the Credit Card Agreement (as defined below). Historically, we recorded PLCC Funds as a reduction to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Under the new policy, we record PLCC Funds in net sales in the consolidated statements of operations and comprehensive income. This reclassification does not have any impact on income from operations, income before provision for income taxes, net income or earnings per share and there was no cumulative effect to stockholders’ deficit or net assets. This reclassification has been retrospectively applied to all prior periods presented. The recognition of PLCC Funds in net sales is preferable because it enhances the comparability of our financial statements with those of many of our industry peers and provides greater transparency into performance metrics relevant to our industry by showing the gross impact of the funds received as net sales instead of as a reduction to selling, general and administrative expenses. The impact of this change in accounting principle is reflected in the tables below (in thousands): Three Months Ended July 30, 2022 As Previously Reported Change in As Adjusted Net sales $ 340,876 $ 12,646 $ 353,522 Cost of goods sold 222,030 — 222,030 Gross profit 118,846 12,646 131,492 Selling, general and administrative expenses 65,928 12,646 78,574 Marketing expenses 13,502 — 13,502 Income from operations $ 39,416 $ — $ 39,416 Six Months Ended July 30, 2022 As Previously Reported Change in As Adjusted Net sales $ 669,285 $ 17,430 $ 686,715 Cost of goods sold 425,293 — 425,293 Gross profit 243,992 17,430 261,422 Selling, general and administrative expenses 133,359 17,430 150,789 Marketing expenses 31,476 — 31,476 Income from operations $ 79,157 $ — $ 79,157 |
Accounting Standards
Accounting Standards | 6 Months Ended |
Jul. 29, 2023 | |
Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards Recently Adopted Accounting Standards during the Six-Month Period Ended July 29, 2023 We did not adopt any new accounting standards during the six-month period ended July 29, 2023 . Accounting Pronouncements Not Yet Adopted We have considered all recent accounting pronouncements and have concluded that there are no recent accounting pronouncements not yet adopted that would have a material impact on our consolidated financial statements, based on current information. |
Inventory
Inventory | 6 Months Ended |
Jul. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | InventoryOur inventory is comprised solely of finished goods and is valued at the lower of moving average cost or net realizable value. We make certain assumptions regarding net realizable value in order to assess whether our inventory is recorded properly at the lower of cost or net realizable value. These assumptions are based on historical average selling price experience, current selling price information and estimated future selling price information. Physical inventory counts are conducted at least once during the year to determine actual inventory on hand and shrinkage. We accrue our estimated inventory shrinkage in our stores for the period between the last physical count and current balance sheet date. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jul. 29, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): July 29, 2023 January 28, 2023 Prepaid and other information technology expenses 10,949 9,048 PLCC Funds receivable 2,991 2,721 Prepaid advertising 1,191 1,068 Prepaid casualty insurance 1,992 2,557 Other 6,835 4,656 Prepaid expenses and other current assets $ 23,958 $ 20,050 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jul. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are summarized as follows (in thousands): July 29, 2023 January 28, 2023 Property and equipment, at cost Leasehold improvements $ 179,333 $ 176,222 Furniture, fixtures and equipment 116,760 115,618 Software and licenses 14,349 14,140 Construction-in-progress 2,591 2,956 313,033 308,936 Less: Accumulated depreciation and amortization (210,428) (195,323) Property and equipment, net $ 102,605 $ 113,613 We recorded depreciation expense related to our property and equipment in the amounts of $9.1 million and $18.3 million during the three- and six-month periods ended July 29, 2023, respectively. We recorded depreciation expense related to our property and equipment in the amounts of $8.8 million and $18.1 million during the three- and six-month periods ended July 30, 2022, respectively. We group and evaluate long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. During the three- and six-month periods ended July 29, 2023 and July 30, 2022, we did not recognize any impairment charges. |
Implementation Costs Incurred i
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts | 6 Months Ended |
Jul. 29, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts | Implementation Costs Incurred in Cloud Computing Arrangements that are Service ContractsOur cloud computing arrangements that are service contracts primarily consist of arrangements with third party vendors for our internal use of their software applications that they host. We defer implementation costs incurred in relation to such arrangements, including costs for software application coding, configuration, integration and customization, while associated process reengineering, training, maintenance and data conversion costs are expensed. Subsequent implementation costs are deferred only to the extent that they constitute major enhancements. The short-term portion of deferred implementation costs are included in prepaid expenses and other current assets in the condensed consolidated balance sheets, while the long-term portion of deferred costs are included in deposits and other noncurrent assets. Amortized implementation costs incurred in cloud computing arrangements that are service contracts are recognized in selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. Deferred implementation costs incurred in cloud computing arrangements that are service contracts are summarized as follows (in thousands): July 29, 2023 January 28, 2023 Internal use of third party hosted software, gross $ 22,568 $ 16,612 Less: Accumulated amortization (8,497) (6,772) Internal use of third party hosted software, net $ 14,071 $ 9,840 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jul. 29, 2023 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): July 29, 2023 January 28, 2023 Accrued inventory-in-transit $ 26,932 $ 20,878 Accrued payroll and related expenses 15,098 20,232 Accrued loyalty program 12,914 13,389 Gift cards 9,630 12,300 Accrued sales return allowance 6,042 6,562 Accrued freight 6,570 5,840 Accrued marketing 4,008 4,103 Accrued sales and use tax 3,186 3,666 Accrued self-insurance liabilities 3,294 2,853 Deferred revenue 1,310 1,471 Accrued purchases of property and equipment 1,163 2,825 Accrued lease costs 3,012 3,593 Term loan interest payable 2,997 188 Other 10,565 10,947 Accrued and other current liabilities $ 106,721 $ 108,847 |
Leases
Leases | 6 Months Ended |
Jul. 29, 2023 | |
Leases [Abstract] | |
Leases | LeasesOur lease costs reflected in the tables below include minimum base rents, common area maintenance charges and heating, ventilation and air conditioning charges. We recognize such lease costs in the applicable expense category in either cost of goods sold, or selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. Our lease costs during the three- and six-month periods ended July 29, 2023 and July 30, 2022 consist of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Operating (fixed) lease cost $ 12,694 $ 12,675 $ 26,345 $ 25,461 Short-term lease cost 37 42 66 95 Variable lease cost 5,334 5,510 10,476 8,854 Total lease cost $ 18,065 $ 18,227 $ 36,887 $ 34,410 Other supplementary information related to our leases is reflected in the table below (in thousands, except lease term and discount rate data): Six Months Ended July 29, 2023 July 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 30,025 $ 28,742 Right-of-use assets obtained in exchange for new operating lease liabilities $ 8,042 $ 7,157 Decrease in right-of-use assets resulting from operating lease modifications or remeasurements $ 4,819 $ 3,975 Weighted average remaining lease term - operating leases 5 years 6 years Weighted average discount rate - operating leases 6 % 6 % |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Loyalty Program | Revenue Recognition We recognize revenue when our performance obligations under the terms of a contract or an implied arrangement with a customer are satisfied, which is when the merchandise is transferred to the customer and the customer obtains control of it. The amount of revenue we recognize reflects the total consideration we expect to receive for the merchandise, which is the transaction price. Our revenue, disaggregated by product category, consists of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Apparel $ 254,569 $ 310,827 $ 513,482 $ 602,480 Non-apparel 26,309 30,049 53,157 66,805 Other 8,266 12,646 16,359 17,430 Total net sales $ 289,144 $ 353,522 $ 582,998 $ 686,715 Amounts within Apparel include revenues earned from the sale of tops, bottoms, dresses, intimates, sleep wear, swim wear and outerwear. Amounts within Non-apparel include revenues earned from the sale of accessories, footwear and beauty. Amounts within Other represent PLCC Funds received. We have an agreement with a third party, which is amended from time to time, to provide customers with private label credit cards ("Credit Card Agreement"). Each private label credit card ("PLCC") bears the logo of the Torrid brand and can only be used at our store locations and on www.torrid.com. A third-party financing company is the sole owner of the accounts issued under the PLCC program and absorbs the losses associated with non-payment by the PLCC holders and a portion of any fraudulent usage of the accounts. Pursuant to the Credit Card Agreement, we receive royalties, profit-sharing and marketing and promotional funds from the third-party financing company based on usage of the PLCCs. These PLCC Funds are recorded as a component of net sales in the condensed consolidated statements of operations and comprehensive income. We recognize a contract liability when we receive consideration from a customer before our performance obligations under the terms of a contract or an implied arrangement with the customer are satisfied. During the six-month period ended July 29, 2023, we recognized revenue of approximately $8.6 million and $4.6 million related to our accrued loyalty program and gift cards, respectively, that existed at the beginning of fiscal year 2023. During the six-month period ended July 30, 2022, |
Loyalty Program
Loyalty Program | 6 Months Ended |
Jul. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Loyalty Program | Revenue Recognition We recognize revenue when our performance obligations under the terms of a contract or an implied arrangement with a customer are satisfied, which is when the merchandise is transferred to the customer and the customer obtains control of it. The amount of revenue we recognize reflects the total consideration we expect to receive for the merchandise, which is the transaction price. Our revenue, disaggregated by product category, consists of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Apparel $ 254,569 $ 310,827 $ 513,482 $ 602,480 Non-apparel 26,309 30,049 53,157 66,805 Other 8,266 12,646 16,359 17,430 Total net sales $ 289,144 $ 353,522 $ 582,998 $ 686,715 Amounts within Apparel include revenues earned from the sale of tops, bottoms, dresses, intimates, sleep wear, swim wear and outerwear. Amounts within Non-apparel include revenues earned from the sale of accessories, footwear and beauty. Amounts within Other represent PLCC Funds received. We have an agreement with a third party, which is amended from time to time, to provide customers with private label credit cards ("Credit Card Agreement"). Each private label credit card ("PLCC") bears the logo of the Torrid brand and can only be used at our store locations and on www.torrid.com. A third-party financing company is the sole owner of the accounts issued under the PLCC program and absorbs the losses associated with non-payment by the PLCC holders and a portion of any fraudulent usage of the accounts. Pursuant to the Credit Card Agreement, we receive royalties, profit-sharing and marketing and promotional funds from the third-party financing company based on usage of the PLCCs. These PLCC Funds are recorded as a component of net sales in the condensed consolidated statements of operations and comprehensive income. We recognize a contract liability when we receive consideration from a customer before our performance obligations under the terms of a contract or an implied arrangement with the customer are satisfied. During the six-month period ended July 29, 2023, we recognized revenue of approximately $8.6 million and $4.6 million related to our accrued loyalty program and gift cards, respectively, that existed at the beginning of fiscal year 2023. During the six-month period ended July 30, 2022, |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 29, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Services Agreements with Hot Topic Hot Topic Inc. ("Hot Topic") is an entity indirectly controlled by affiliates of Sycamore. From June 2, 2017 until its termination on March 21, 2019, we had a services agreement ("Third Party Services Agreement") with Hot Topic, pursuant to which Hot Topic provided us (or caused applicable third parties to provide) certain services, including information technology, distribution and logistics management, real estate leasing and construction management and other services as may have been specified. On March 21, 2019, we entered into an amended and restated services agreement ("Amended and Restated Services Agreement") with Hot Topic under which Hot Topic provided us (or caused applicable third parties to provide) substantially similar services to those provided under the Third Party Services Agreement. The term of the Amended and Restated Services Agreement was three years, unless we or Hot Topic extended the agreement, or we terminated the agreement (or certain services under the agreement). In connection with the Reverse Services Agreement (as defined below), we entered into an amendment to the Amended and Restated Services Agreement ("Amendment to Amended and Restated Services Agreement") with Hot Topic on August 1, 2019, pursuant to which sections pertaining to Hot Topic's provision of information technology services to Torrid were removed. We record payments made to Hot Topic under these service agreements in the applicable expense category in either cost of goods sold, or selling, general and administrative expenses. During the three- and six-month periods ended July 29, 2023, Hot Topic charged us $0.5 million and $1.1 million, respectively, for various services under the applicable services agreements, all of which were recorded as a component of selling, general and administrative expenses. During the three- and six-month periods ended July 30, 2022, Hot Topic charged us $0.6 million and $1.2 million, respectively, for various services under the applicable services agreements, all of which were recorded as a component of selling, general and administrative expenses. As of the end of the second quarter of fiscal year 2023, we owed $0.3 million to Hot Topic for these services and as of the end of fiscal year 2022, we owed $0.2 million to Hot Topic for these services. On August 1, 2019, we entered into a services agreement ("Reverse Services Agreement") with Hot Topic, under which Torrid provided Hot Topic with certain information technology services. The term of the Reverse Services Agreement was three years, unless we or Hot Topic extended the agreement, or Hot Topic terminated the agreement. Torrid provided Hot Topic with the specified information technology services at no cost for the first three years of the Reverse Services Agreement, however Hot Topic bore certain capital and operating expenses that it incurred. Costs incurred in connection with providing the specified information technology services to Hot Topic were expensed as incurred in our condensed consolidated statements of operations and comprehensive income. During the three- and six-month periods ended July 30, 2022, we incurred costs of $0.7 million and $1.6 million, respectively, in connection with providing these information technology services to Hot Topic. On July 31, 2022, we entered into a first amendment to the Reverse Services Agreement (“Amended Reverse Services Agreement”) with Hot Topic, under which Torrid provided Hot Topic with certain information technology services for a fixed fee. The term of the Amended Reverse Services Agreement was five months while both parties negotiated a longer-term amendment to the Reverse Services Agreement with modified terms and conditions. On September 30, 2022, we entered into a second amendment to the Reverse Services Agreement (“Second Amended Reverse Services Agreement”) with Hot Topic, under which Torrid provides Hot Topic with certain information technology services for a fixed fee. The term of the Second Amended Reverse Services Agreement was two months while both parties negotiated a longer-term amendment to the Reverse Services Agreement with modified terms and conditions. Effective December 1, 2022, we entered into a third amendment to the Reverse Services Agreement (“Third Amended Reverse Services Agreement”) with Hot Topic, under which Torrid provides Hot Topic with certain information technology services for a fixed fee. The term of the Third Amended Reverse Services Agreement ends on May 4, 2024, unless we and Hot Topic mutually agree to extend the agreement, or we or Hot Topic terminate the agreement (or certain services under the agreement), upon written notice. During the three- and six-month periods ended July 29, 2023, we charged Hot Topic $0.5 million and $0.9 million, respectively, for these services. As of the end of the second quarter of fiscal year 2023, and as of the end of fiscal year 2022, Hot Topic owed us $0.3 million and $0.1 million, respectively, for these services. Hot Topic incurs certain direct expenses on our behalf, such as payments to our non-merchandise vendors and each month, we pay Hot Topic for these pass-through expenses. As of the end of the second quarter of fiscal year 2023 and as of the end of fiscal year 2022, the net amount we owed Hot Topic for these expenses was $0.6 million and $1.1 million, respectively, which is included in due to related parties in our condensed consolidated balance sheets. Sponsor Advisory Services Agreement On May 1, 2015, we entered into an advisory services agreement with Sycamore, pursuant to which Sycamore agreed to provide strategic planning and other related services to us. We are obligated to reimburse Sycamore for its expenses incurred in connection with providing such advisory services to us. As of the end of the second quarter of fiscal year 2023 and as of the end of fiscal year 2022, there were no amounts due, and during the three- and six-month periods ended July 29, 2023 and July 30, 2022, no amounts were paid under this agreement. From time to time, we reimburse Sycamore for certain management expenses it pays on our behalf. During the three- and six-month periods ended July 29, 2023, the amount paid to Sycamore for these expenses was not material. During the three- and six-month periods ended July 30, 2022, we did not make any reimbursements to Sycamore. As of the end of the second quarter of fiscal year 2023 and as of the end of fiscal year 2022, there was no amount due. Other Related Party Transactions MGF Sourcing US, LLC, an entity indirectly controlled by affiliates of Sycamore, is one of our suppliers. During the three- and six-month periods ended July 29, 2023, cost of goods sold included $15.6 million and $30.9 million, respectively, related to the sale of merchandise purchased from this supplier. During the three- and six-month periods ended July 30, 2022, cost of goods sold included $19.1 million and $36.1 million, respectively, related to the sale of merchandise purchased from this supplier. As of the end of the second quarter of fiscal year 2023 and as of the end of fiscal year 2022, the net amounts we owed MGF for these purchases were $9.8 million and $11.6 million, respectively. This liability is included in due to related parties in our condensed consolidated balance sheets. HU Merchandising, LLC, a subsidiary of Hot Topic, is one of our suppliers. During the three- and six-month periods ended July 29, 2023, cost of goods sold included $0.2 million in both periods, related to the sale of merchandise purchased from this supplier. During the three- and six-month periods ended July 30, 2022, cost of goods sold included $0.2 million and $0.3 million, respectively, related to the sale of merchandise purchased from this supplier. As of the end of the second quarter of fiscal year 2023, the amount due to HU Merchandising, LLC w as $0.1 million and as of the end of fiscal year 2022, there was no amount due. This liability is included in due to related parties in our condensed consolidated balance sheets. Staples, Inc., an entity indirectly controlled by affiliates of Sycamore, is one of our suppliers. During the three- and six-month periods ended July 29, 2023 and July 30, 2022, purchases from this supplier were not material . As of the end of the second quarter of fiscal year 2023, there was no amount due and as of the end of fiscal year 2022, the amount due to Staples, Inc. was not material. |
Debt Financing Arrangements
Debt Financing Arrangements | 6 Months Ended |
Jul. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt Financing Arrangements | Debt Financing Arrangements Our debt financing arrangements consist of the following (in thousands): July 29, 2023 January 28, 2023 Existing ABL Facility, as amended $ — $ 8,380 Term loan New Term Loan Credit Agreement 319,375 328,125 Less: current portion of unamortized original issue discount and debt financing costs (1,356) (1,356) Less: noncurrent portion of unamortized original issue discount and debt financing costs (5,250) (5,928) Total term loan outstanding, net of unamortized original issue discount and debt financing costs 312,769 320,841 Less: current portion of term loan, net of unamortized original issue discount and debt financing costs (16,144) (16,144) Total term loan, net of current portion and unamortized original issue discount and debt financing costs $ 296,625 $ 304,697 Fixed mandatory principal repayments due on the outstanding term loan are as follows as of the end of the second quarter of fiscal year 2023 (in thousands): 2023 8,750 2024 17,500 2025 17,500 2026 17,500 2027 17,500 2028 240,625 $ 319,375 New Term Loan Credit Agreement On June 14, 2021, we entered into a term loan credit agreement ("New Term Loan Credit Agreement") among Bank of America, N.A., as agent, and the lenders party thereto. On May 24, 2023, we entered into an amendment to the New Term Loan Credit Agreement (the "1st Amendment to the New Term Loan Credit Agreement"). The 1st Amendment to the New Term Loan Credit Agreement replaced the London Interbank Offered Rate ("LIBOR") interest rate benchmark with the Secured Overnight Financing Rate ("SOFR") benchmark. All other material terms of the New Term Loan Credit Agreement remained substantially the same after giving effect to the 1st Amendment to the New Term Loan Credit Agreement. In March 2020 and January 2021, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Updates ("ASU") 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04") and 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2021-01"), respectively. ASU 2020-04 and ASU 2021-01 include practical expedients which provide entities the option to account for qualifying amendments as if the modification was not substantial in accordance with Accounting Standards Codification ("ASC") 470, Debt . We elected this option, accordingly, the 1st Amendment to the New Term Loan Credit Agreement did not have a material impact on our condensed consolidated financial statements. The New Term Loan Credit Agreement provides for term loans in an initial aggregate amount of $350.0 million, which is recorded net of an original issue discount ("OID") of $3.5 million and has a maturity date of June 14, 2028. In connection with the New Term Loan Credit Agreement, we paid financing costs of approximately $6.0 million. The elected interest rate on July 29, 2023 was approximately 11%. As of the end of the second quarter of fiscal year 2023, we were compliant with our debt covenants under the New Term Loan Credit Agreement. As of July 29, 2023, the fair value of the New Term Loan Credit Agreement was approximately $273.1 million. As of the end of fiscal year 2022, the fair value of the New Term Loan Credit Agreement was approximately $267.4 million. The fair value of the New Term Loan Credit Agreement is determined using current applicable rates for similar instruments as of the balance sheet date, a Level 2 measurement (as defined in "Note 19—Fair Value Measurements"). As of the end of the second quarter of fiscal year 2023, total borrowings, net of OID and financing costs, of $312.8 million remain outstanding under the New Term Loan Credit Agreement. During the three- and six-month periods ended July 29, 2023, we recognized $8.9 million and $17.4 million, respectively, of interest expense related to the New Term Loan Credit Agreement. During the three- and six-month periods ended July 30, 2022, we recognized $5.8 million and $11.3 million, respectively, of interest expense related to the New Term Loan Credit Agreement. During the three- and six-month periods ended July 29, 2023, we recognized $0.3 million and $0.6 million, respectively, of OID and financing costs related to the New Term Loan Credit Agreement. During the three- and six-month periods ended July 30, 2022, we recognized $0.3 million and $0.6 million, respectively, of OID and financing costs related to the New Term Loan Credit Agreement. The OID and financing costs are amortized over the New Term Loan Credit Agreement's seven-year term and are reflected as a direct deduction of the face amount of the term loan in our condensed consolidated balance sheets. We recognize interest payments, together with amortization of the OID and financing costs, in interest expense in our condensed consolidated statements of operations and comprehensive income. Senior Secured Asset-Based Revolving Credit Facility In May 2015, we entered into a credit agreement for a senior secured asset-based revolving credit facility ("Original ABL Facility") of $50.0 million (subject to a borrowing base), with Bank of America, N.A. On October 23, 2017, we entered into an amended and restated credit agreement ("Existing ABL Facility"), which amended our Original ABL Facility. The Existing ABL Facility increased the aggregate commitments available under the Original ABL Facility from $50.0 million to $100.0 million (subject to a borrowing base); and increased our right to request additional commitments from up to $30.0 million to up to $30.0 million plus the aggregate principal amount of any permanent principal reductions we may take (subject to customary conditions precedent). On June 14, 2019, we entered into an amendment to the Existing ABL Facility (the "1st Amendment"). The 1st Amendment decreased the aggregate commitments available under the Existing ABL Facility from $100.0 million to $70.0 million (subject to a borrowing base), permitted indebtedness incurred pursuant to the Term Loan Credit Agreement and made certain other modifications. On September 4, 2019, we entered into another amendment to the Existing ABL Facility (the "2nd Amendment"). The 2nd Amendment permitted parent company financial statements to be used to satisfy reporting requirements and made certain other modifications. On June 14, 2021, in conjunction with the New Term Loan Credit Agreement, we entered into a third amendment to the Existing ABL Facility (the "3rd Amendment"), which amended our Existing ABL Facility, as amended. The 3rd Amendment increased the aggregate commitments available under the Existing ABL facility, as amended, from $70.0 million to $150.0 million (subject to a borrowing base) and extended the date upon which the principal amount outstanding of the loans would be due and payable in full from October 23, 2022 to June 14, 2026. On April 21, 2023, we entered into a fourth amendment to the Existing ABL Facility (the "4th Amendment"). The 4th Amendment replaced the LIBOR interest rate benchmark with the SOFR benchmark. All other material terms of the Existing ABL Facility, as amended, remained substantially the same after giving effect to the 4th Amendment. We elected to apply the practical expedients included in ASU 2020-04 and 2021-01, accordingly, the 4th Amendment did not have a material impact on our condensed consolidated financial statements. As of the end of the second quarter of fiscal year 2023, the applicable interest rate for borrowings under the Existing ABL Facility, as amended, was approximately 9% per annum. As of the end of the second quarter of fiscal year 2023, we were compliant with our debt covenants under the Existing ABL Facility, as amended. As of the end of the second quarter of fiscal year 2023, the maximum restricted payment utilizing the Existing ABL Facility, as amended, that our subsidiaries could make from its net assets was $117.0 million. We consider the carrying amounts of the Existing ABL Facility, as amended, to approximate fair value because of the variable interest rate of this facility, a Level 2 measurement (as defined in "Note 19—Fair Value Measurements"). Availability under the Existing ABL Facility, as amended, as of the end of the second quarter of fiscal year 2023 was $130.3 million, which reflects no borrowings. Availability under the Existing ABL Facility, as amended, at the end of fiscal year 2022 was $134.2 million, which reflects borrowings of $8.4 million. Standby letters of credit issued and outstanding were $7.4 million as of the end of the second quarter of fiscal year 2023 and $7.4 million as of the end of fiscal year 2022. During the third quarter of fiscal year 2017, we incurred $0.5 million of financing costs for the Existing ABL Facility, which were reduced |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate During the three- and six-month periods ended July 29, 2023, the provision for income taxes were $4.0 million and $8.8 million, respectively. During the three- and six-month periods ended July 30, 2022, the provision for income taxes were $10.0 million and $19.3 million, respectively. The effective tax rates for the three- and six-month periods ended July 29, 2023 were 37.9% and 32.2%, respectively. The effective tax rates for the three- and six-month periods ended July 30, 2022 were 30.5% and 29.3%, respectively. The increase in the effective tax rate for the three- and six months ended July 29, 2023 as compared to the three- and six months ended July 30, 2022 was primarily due to an increase in the amount of non-deductible compensation for covered employees and state income taxes relative to income before provision for income taxes for the three- and six months ended July 29, 2023. On August 16, 2022, the Inflation Reduction Act of 2022 (the "IR Act") was enacted to reduce inflation and promote clean energy in the United States. Among other things, the IR Act introduced a 15% alternative minimum tax based on the adjusted financial statement income of corporations or their predecessors with a three-year taxable year average annual adjusted financial statement income in excess of $1 billion and imposes a 1% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. In addition, the current administration has announced a proposal to increase such excise tax to 4%. The IR Act also includes provisions intended to mitigate climate change by, among others, providing tax credit incentives for reductions in greenhouse gas emissions. We have considered the applicable IR Act tax law changes in our tax provision for the three- and six-month periods ended July 29, 2023, and continue to evaluate the impact of these tax law changes on future periods. Uncertain Tax Positions The amount of income taxes we pay is subject to ongoing audits by taxing authorities. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts and circumstances existing at the time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. As of the end of the second quarter of fiscal year 2023, the total liability for income tax associated with unrecognized tax benefits, including interest and penalties, was $3.8 million ($3.3 million, net of federal benefit). As of the end of fiscal year 2022, the total liability for income tax associated with unrecognized tax benefits, including interest and penalties, was $3.8 million ($3.3 million, net of federal benefit). Our effective tax rate will be affected by any portion of this liability we may recognize. We believe that it is reasonably possible that $1.7 million ($1.6 million net of federal benefit) of our liability for unrecognized tax benefits, of which the associated interest and penalties are not material, may be recognized in the next 12 months due to the expiration of statutes of limitations. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Our share-based compensation expense, by award type, consists of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Restricted stock units $ 491 $ 253 $ 1,131 $ 754 Restricted stock awards 755 1,613 1,700 3,290 Performance stock units 106 110 387 110 Stock options 280 169 715 363 Restricted cash units 246 — 357 — Employee stock purchase plan 30 30 106 138 Share-based compensation before income taxes 1,908 2,175 4,396 4,655 Income tax (benefit) detriment (114) 192 (422) 33 Net share-based compensation expense $ 1,794 $ 2,367 $ 3,974 $ 4,688 RSUs Restricted stock unit ("RSU") activity, including Performance stock units ("PSUs"), consists of the following (in thousands, except per share amounts): Shares Weighted average grant date fair value per share Nonvested, January 28, 2023 1,386 $ 6.55 Granted 1,125 $ 2.93 Vested (163) $ 10.34 Forfeited (437) $ 5.74 Nonvested, July 29, 2023 1,911 $ 4.28 As of the end of the second quarter of fiscal year 2023, unrecognized compensation expense related to unvested RSUs, including PSUs, was $6.8 million, which is expected to be recognized over a weighted average period of approximately 2.8 years. Restricted Stock Awards Restricted stock award activity consists of the following (in thousands, except per share amounts): Shares Weighted average grant date fair value per share Nonvested, January 28, 2023 211 $ 27.00 Granted — Vested (72) $ 27.00 Forfeited (104) $ 27.00 Nonvested, July 29, 2023 35 $ 27.00 As of the end of the second quarter of fiscal year 2023, unrecognized compensation expense related to unvested restricted stock awards was $0.4 million, which is expected to be recognized over a weighted average period of approximately 0.4 years. Stock Options Stock option activity consists of the following (in thousands, except per share and contractual life amounts): Shares Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding, January 28, 2023 1,444 $ 7.38 9.4 $ 115 Granted 1,370 $ 3.26 Exercised — Forfeited (477) $ 5.70 Outstanding, July 29, 2023 2,337 $ 5.30 9.2 $ — Exercisable, July 29, 2023 191 $ 11.88 8.2 $ — As of the end of the second quarter of fiscal year 2023, unrecognized compensation expense related to unvested stock options was $5.2 million, which is expected to be recognized over a weighted average period of approximately 3.3 years. RCUs Restricted cash units ("RCUs") are awarded to certain employees, non-employee directors and consultants and represent the right to receive a cash payment at the end of a vesting period, subject to the employee's continued employment or service as a director or consultant. In general, RCUs vest in equal installments each year over 4 years. RCUs are cash-settled with the value of each vested RCU equal to the lower of the closing price per share of our common stock on the vesting date or a specified per share price cap. We determined that RCUs are in-substance liabilities accounted for as liability instruments in accordance with ASC 718, Compensation—Stock Compensation , due to this cash settlement feature . RCUs are remeasured based on the closing price per share of our common stock at the end of each reporting period. The liability associated with the RCUs is included in accrued and other current liabilities in the condensed consolidated balance sheet. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jul. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In November 2022, a class action complaint was filed against us in the U.S. District Court for the Central District of California, captioned Sandra Waswick v. Torrid Holdings Inc., et al. An amended complaint was filed in May 2023. The amended complaint alleges that certain statements in our registration statement on Form S-1 related to our IPO and in subsequent SEC filings and earnings calls were allegedly false and misleading. We believe that these allegations are without merit and intend to vigorously defend ourselves against these claims. We are currently unable to determine the probability of the outcome of this matter or the range of reasonably possible loss, if any. From time to time, we are involved in other matters of litigation that arise in the ordinary course of business. Though significant litigation or awards against us could seriously harm our business and financial results, we do not at this time expect any of our pending matters of litigation to have a material adverse effect on our overall financial condition. Indemnities, Commitments and Guarantees During the ordinary course of business, we have made certain indemnities, commitments and guarantees under which we may be required to make payments in relation to certain transactions. These indemnities include those given to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnities to our board of directors and officers to the maximum extent permitted. Commitments include those given to various merchandise vendors and suppliers. From time to time, we have issued guarantees in the form of standby letters of credit as security for workers' compensation claims (our letters of credit are discussed in more detail in "Note 12—Debt Financing Arrangements"). The durations of these indemnities, commitments and guarantees vary. Some of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make. We have not recorded any liability for these indemnities, commitments and guarantees in the accompanying condensed consolidated financial statements as no demands have been made upon us to provide indemnification under such agreements and there are no claims that we are aware of that could have a material effect on our condensed consolidated financial statements. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jul. 29, 2023 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' DeficitTorrid is authorized to issue 1.0 billion shares of common stock at $0.01 par value, and 5.0 million shares of preferred stock at $0.01 par value. Torrid had 104,044,344 shares of common stock and no shares of preferred stock issued and outstanding as of July 29, 2023. |
Share Repurchases
Share Repurchases | 6 Months Ended |
Jul. 29, 2023 | |
Equity [Abstract] | |
Share Repurchases | Share Repurchases On December 6, 2021, the Board authorized a share repurchase program under which we may purchase up to $100.0 million of our outstanding common stock. Repurchases may be made from time to time, depending upon a variety of factors, including share price, corporate and regulatory requirements, and other market and business conditions, as determined by us. We may purchase shares of our common stock in the open market at current market prices at the time of purchase, in privately negotiated transactions, or by other means. The authorization does not, however, obligate us to acquire any particular amount of shares, and the share repurchase program may be suspended or terminated at any time at our discretion. As of July 29, 2023, we had approximately $44.9 million remaining under the share repurchase program. Share repurchase activity consists of the following (in thousands, except share and per share amounts): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Number of shares repurchased — 1,545,811 — 4,464,367 Total cost $ — $ 8,835 $ — $ 31,700 Average per share cost including commissions $ 5.72 $ 7.10 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 29, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is applicable only in periods of net income and is computed by dividing net income by the weighted average number of common shares outstanding for the period, inclusive of potentially dilutive common share equivalents outstanding for the period. Periods of net loss require the diluted computation to be the same as the basic computation. During the three- and six-month periods ended July 29, 2023, there were approximately 0.2 million potentially dilutive common share equivalents outstanding that were included in the computation of diluted earnings per share. During the three-month period ended July 29, 2023, there were approximately 1.3 million restricted stock awards and RSUs, including PSUs, and approximately 2.5 million stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive or were PSUs with performance conditions that had not yet been achieved. During the six-month period ended July 29, 2023, there were approximately 1.3 million restricted stock awards and RSUs, including PSUs, and approximately 2.3 million stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive or were PSUs with performance conditions that had not yet been achieved. During the three- and six-month periods ended July 30, 2022, there were approximately 0.1 million potentially dilutive common share equivalents outstanding that were included in the computation of diluted earnings per share. During the three-month period ended July 30, 2022, there were approximately 0.9 million restricted stock awards and RSUs, including PSUs, and approximately 0.7 million stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive or were PSUs with performance conditions that had not yet been achieved. During the six-month period ended July 30, 2022, there were approximately 0.7 million restricted stock awards and RSUs, including PSUs, and approximately 0.6 million stock options outstanding, which were excluded from the computation of diluted earnings per share as those awards would have been anti-dilutive or were PSUs with performance conditions that had not yet been achieved. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsWe carry certain of our assets and liabilities 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 require us 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 our estimates and assumptions that market participants would use in pricing the asset or liability. Financial assets and liabilities measured at fair value on a recurring basis as of the end of the second quarter of fiscal year 2023 consisted of the following (in thousands): July 29, Quoted Prices Significant Significant Assets: Money market funds (cash equivalent) $ 2,558 $ 2,558 $ — $ — Total assets $ 2,558 $ 2,558 $ — $ — Liabilities: Deferred compensation plan liability (noncurrent) $ 4,854 $ — $ 4,854 $ — Total liabilities $ 4,854 $ — $ 4,854 $ — Financial assets and liabilities measured at fair value on a recurring basis as of the end of fiscal year 2022 consisted of the following (in thousands): January 28, Quoted Prices Significant Significant Assets: Money market funds (cash equivalent) $ 29 $ 29 $ — $ — Total assets $ 29 $ 29 $ — $ — Liabilities: Deferred compensation plan liability (noncurrent) $ 4,246 $ — $ 4,246 $ — Total liabilities $ 4,246 $ — $ 4,246 $ — |
Deferred Compensation Plan
Deferred Compensation Plan | 6 Months Ended |
Jul. 29, 2023 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation Plan | Deferred Compensation PlanOn August 1, 2015, we established the Torrid LLC Management Deferred Compensation Plan ("Deferred Compensation Plan") for the purpose of providing highly compensated employees a program to meet their financial planning needs. The Deferred Compensation Plan provides participants with the opportunity to defer up to 80% of their base salary and up to 100% of their annual earned bonus, all of which, together with the associated investment returns, are 100% vested from the outset. The Deferred Compensation Plan is designed to be exempt from most provisions of the Employee Retirement Security Act of 1974, as amended. All deferrals and associated earnings are our general unsecured obligations. We may at our discretion contribute certain amounts to eligible employees' accounts. To the extent participants are ineligible to receive contributions from participation in our 401(k) Plan (as defined in "Note 21—Employee Benefit Plan"), we may contribute 50% of the first 4% of participants' eligible contributions into their Deferred Compensation Plan accounts. As of the end of the second quarter of fiscal year 2023 and as of the end of fiscal year 2022, we did not have any assets of the Deferred Compensation Plan and the associated liabilities were $5.2 million and $5.6 million, respectively, included in our condensed consolidated balance sheets. As of the end of the second quarter of fiscal year 2023, $0.3 million of the $5.2 million Deferred Compensation Plan liabilities were included in accrued and other current liabilities in our condensed consolidated balance sheets. As of the end of fiscal year 2022, $1.4 million of the $5.6 million Deferred Compensation Plan Liabilities were included in accrued and other current liabilities in our condensed consolidated balance sheets. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jul. 29, 2023 | |
Retirement Benefits [Abstract] | |
Deferred Compensation Plan | Employee Benefit PlanOn August 1, 2015, we adopted the Torrid 401(k) Plan |
Basis of Presentation and Des_2
Basis of Presentation and Description of the Business (Policies) | 6 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal YearOur fiscal year ends on the Saturday nearest to January 31 and each fiscal year is generally comprised of four 13-week quarters (although in years with 53 weeks, the fourth quarter is comprised of 14 weeks). |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial information. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. Operating results for the three- and six-month periods ended July 29, 2023 and July 30, 2022 are not necessarily indicative of the results that may be expected for any future interim periods, the fiscal year ending February 3, 2024, or for any future fiscal year. |
Principles of Consolidation | The condensed consolidated balance sheet information at January 28, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements and related footnotes should be read in conjunction with our audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023. The unaudited condensed consolidated financial statements include Torrid and those of our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Segment Reporting | We have determined that we have one reportable segment, which includes the operation of our e-Commerce platform and stores. The single segment was identified based on how the Chief Operating Decision Maker, who we have determined to be our Chief Executive Officer, manages and evaluates performance and allocates resources. |
Store Pre-Opening Cost | Store Pre-Opening CostsCosts incurred in connection with the opening of new stores, store remodels or relocations are expensed as incurred in selling, general and administrative expenses in our condensed consolidated statements of operations and comprehensive income. |
Recently Adopted Accounting Standards And Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards during the Six-Month Period Ended July 29, 2023 We did not adopt any new accounting standards during the six-month period ended July 29, 2023 . Accounting Pronouncements Not Yet Adopted We have considered all recent accounting pronouncements and have concluded that there are no recent accounting pronouncements not yet adopted that would have a material impact on our consolidated financial statements, based on current information. |
Inventory | InventoryOur inventory is comprised solely of finished goods and is valued at the lower of moving average cost or net realizable value. We make certain assumptions regarding net realizable value in order to assess whether our inventory is recorded properly at the lower of cost or net realizable value. These assumptions are based on historical average selling price experience, current selling price information and estimated future selling price information. Physical inventory counts are conducted at least once during the year to determine actual inventory on hand and shrinkage. We accrue our estimated inventory shrinkage in our stores for the period between the last physical count and current balance sheet date. |
Basis of Presentation and Des_3
Basis of Presentation and Description of the Business (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of Change In Accounting Principle | The impact of this change in accounting principle is reflected in the tables below (in thousands): Three Months Ended July 30, 2022 As Previously Reported Change in As Adjusted Net sales $ 340,876 $ 12,646 $ 353,522 Cost of goods sold 222,030 — 222,030 Gross profit 118,846 12,646 131,492 Selling, general and administrative expenses 65,928 12,646 78,574 Marketing expenses 13,502 — 13,502 Income from operations $ 39,416 $ — $ 39,416 Six Months Ended July 30, 2022 As Previously Reported Change in As Adjusted Net sales $ 669,285 $ 17,430 $ 686,715 Cost of goods sold 425,293 — 425,293 Gross profit 243,992 17,430 261,422 Selling, general and administrative expenses 133,359 17,430 150,789 Marketing expenses 31,476 — 31,476 Income from operations $ 79,157 $ — $ 79,157 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): July 29, 2023 January 28, 2023 Prepaid and other information technology expenses 10,949 9,048 PLCC Funds receivable 2,991 2,721 Prepaid advertising 1,191 1,068 Prepaid casualty insurance 1,992 2,557 Other 6,835 4,656 Prepaid expenses and other current assets $ 23,958 $ 20,050 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are summarized as follows (in thousands): July 29, 2023 January 28, 2023 Property and equipment, at cost Leasehold improvements $ 179,333 $ 176,222 Furniture, fixtures and equipment 116,760 115,618 Software and licenses 14,349 14,140 Construction-in-progress 2,591 2,956 313,033 308,936 Less: Accumulated depreciation and amortization (210,428) (195,323) Property and equipment, net $ 102,605 $ 113,613 |
Implementation Costs Incurred_2
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Implementation Costs | Deferred implementation costs incurred in cloud computing arrangements that are service contracts are summarized as follows (in thousands): July 29, 2023 January 28, 2023 Internal use of third party hosted software, gross $ 22,568 $ 16,612 Less: Accumulated amortization (8,497) (6,772) Internal use of third party hosted software, net $ 14,071 $ 9,840 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): July 29, 2023 January 28, 2023 Accrued inventory-in-transit $ 26,932 $ 20,878 Accrued payroll and related expenses 15,098 20,232 Accrued loyalty program 12,914 13,389 Gift cards 9,630 12,300 Accrued sales return allowance 6,042 6,562 Accrued freight 6,570 5,840 Accrued marketing 4,008 4,103 Accrued sales and use tax 3,186 3,666 Accrued self-insurance liabilities 3,294 2,853 Deferred revenue 1,310 1,471 Accrued purchases of property and equipment 1,163 2,825 Accrued lease costs 3,012 3,593 Term loan interest payable 2,997 188 Other 10,565 10,947 Accrued and other current liabilities $ 106,721 $ 108,847 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Leases [Abstract] | |
Lease Costs and Other Supplementary Information Related to Leases | Our lease costs during the three- and six-month periods ended July 29, 2023 and July 30, 2022 consist of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Operating (fixed) lease cost $ 12,694 $ 12,675 $ 26,345 $ 25,461 Short-term lease cost 37 42 66 95 Variable lease cost 5,334 5,510 10,476 8,854 Total lease cost $ 18,065 $ 18,227 $ 36,887 $ 34,410 Other supplementary information related to our leases is reflected in the table below (in thousands, except lease term and discount rate data): Six Months Ended July 29, 2023 July 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 30,025 $ 28,742 Right-of-use assets obtained in exchange for new operating lease liabilities $ 8,042 $ 7,157 Decrease in right-of-use assets resulting from operating lease modifications or remeasurements $ 4,819 $ 3,975 Weighted average remaining lease term - operating leases 5 years 6 years Weighted average discount rate - operating leases 6 % 6 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenue, disaggregated by product category, consists of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Apparel $ 254,569 $ 310,827 $ 513,482 $ 602,480 Non-apparel 26,309 30,049 53,157 66,805 Other 8,266 12,646 16,359 17,430 Total net sales $ 289,144 $ 353,522 $ 582,998 $ 686,715 |
Debt Financing Arrangements (Ta
Debt Financing Arrangements (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Financing Arrangements | Our debt financing arrangements consist of the following (in thousands): July 29, 2023 January 28, 2023 Existing ABL Facility, as amended $ — $ 8,380 Term loan New Term Loan Credit Agreement 319,375 328,125 Less: current portion of unamortized original issue discount and debt financing costs (1,356) (1,356) Less: noncurrent portion of unamortized original issue discount and debt financing costs (5,250) (5,928) Total term loan outstanding, net of unamortized original issue discount and debt financing costs 312,769 320,841 Less: current portion of term loan, net of unamortized original issue discount and debt financing costs (16,144) (16,144) Total term loan, net of current portion and unamortized original issue discount and debt financing costs $ 296,625 $ 304,697 |
Schedule of Principal Repayments of Debt | Fixed mandatory principal repayments due on the outstanding term loan are as follows as of the end of the second quarter of fiscal year 2023 (in thousands): 2023 8,750 2024 17,500 2025 17,500 2026 17,500 2027 17,500 2028 240,625 $ 319,375 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Our share-based compensation expense, by award type, consists of the following (in thousands): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Restricted stock units $ 491 $ 253 $ 1,131 $ 754 Restricted stock awards 755 1,613 1,700 3,290 Performance stock units 106 110 387 110 Stock options 280 169 715 363 Restricted cash units 246 — 357 — Employee stock purchase plan 30 30 106 138 Share-based compensation before income taxes 1,908 2,175 4,396 4,655 Income tax (benefit) detriment (114) 192 (422) 33 Net share-based compensation expense $ 1,794 $ 2,367 $ 3,974 $ 4,688 |
Schedule of Restricted Stock Units Activity And Performance Stock Units Activity | Restricted stock unit ("RSU") activity, including Performance stock units ("PSUs"), consists of the following (in thousands, except per share amounts): Shares Weighted average grant date fair value per share Nonvested, January 28, 2023 1,386 $ 6.55 Granted 1,125 $ 2.93 Vested (163) $ 10.34 Forfeited (437) $ 5.74 Nonvested, July 29, 2023 1,911 $ 4.28 |
Schedule of Restricted Stock Activity | Restricted stock award activity consists of the following (in thousands, except per share amounts): Shares Weighted average grant date fair value per share Nonvested, January 28, 2023 211 $ 27.00 Granted — Vested (72) $ 27.00 Forfeited (104) $ 27.00 Nonvested, July 29, 2023 35 $ 27.00 |
Schedule of Stock Option Activity | Stock option activity consists of the following (in thousands, except per share and contractual life amounts): Shares Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding, January 28, 2023 1,444 $ 7.38 9.4 $ 115 Granted 1,370 $ 3.26 Exercised — Forfeited (477) $ 5.70 Outstanding, July 29, 2023 2,337 $ 5.30 9.2 $ — Exercisable, July 29, 2023 191 $ 11.88 8.2 $ — |
Share Repurchases (Tables)
Share Repurchases (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity | Share repurchase activity consists of the following (in thousands, except share and per share amounts): Three Months Ended Six Months Ended July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022 Number of shares repurchased — 1,545,811 — 4,464,367 Total cost $ — $ 8,835 $ — $ 31,700 Average per share cost including commissions $ 5.72 $ 7.10 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of the end of the second quarter of fiscal year 2023 consisted of the following (in thousands): July 29, Quoted Prices Significant Significant Assets: Money market funds (cash equivalent) $ 2,558 $ 2,558 $ — $ — Total assets $ 2,558 $ 2,558 $ — $ — Liabilities: Deferred compensation plan liability (noncurrent) $ 4,854 $ — $ 4,854 $ — Total liabilities $ 4,854 $ — $ 4,854 $ — Financial assets and liabilities measured at fair value on a recurring basis as of the end of fiscal year 2022 consisted of the following (in thousands): January 28, Quoted Prices Significant Significant Assets: Money market funds (cash equivalent) $ 29 $ 29 $ — $ — Total assets $ 29 $ 29 $ — $ — Liabilities: Deferred compensation plan liability (noncurrent) $ 4,246 $ — $ 4,246 $ — Total liabilities $ 4,246 $ — $ 4,246 $ — |
Basis of Presentation and Des_4
Basis of Presentation and Description of the Business (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 USD ($) | Jul. 30, 2022 USD ($) | Jul. 29, 2023 USD ($) segment | Jul. 30, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of reportable segments | segment | 1 | |||
Pre-opening costs | $ | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.5 |
Basis of Presentation and Des_5
Basis of Presentation and Description of the Business - Impact of Change In Accounting Principle (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net sales | $ 289,144 | $ 353,522 | $ 582,998 | $ 686,715 |
Cost of goods sold | 186,467 | 222,030 | 369,679 | 425,293 |
Gross profit | 102,677 | 131,492 | 213,319 | 261,422 |
Selling, general and administrative expenses | 69,591 | 78,574 | 140,819 | 150,789 |
Marketing expenses | 12,898 | 13,502 | 26,249 | 31,476 |
Income from operations | $ 20,188 | 39,416 | $ 46,251 | 79,157 |
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net sales | 340,876 | 669,285 | ||
Cost of goods sold | 222,030 | 425,293 | ||
Gross profit | 118,846 | 243,992 | ||
Selling, general and administrative expenses | 65,928 | 133,359 | ||
Marketing expenses | 13,502 | 31,476 | ||
Income from operations | 39,416 | 79,157 | ||
Change in Accounting Principle | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net sales | 12,646 | 17,430 | ||
Cost of goods sold | 0 | 0 | ||
Gross profit | 12,646 | 17,430 | ||
Selling, general and administrative expenses | 12,646 | 17,430 | ||
Marketing expenses | 0 | 0 | ||
Income from operations | $ 0 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid and other information technology expenses | $ 10,949 | $ 9,048 |
PLCC Funds receivable | 2,991 | 2,721 |
Prepaid advertising | 1,191 | 1,068 |
Prepaid casualty insurance | 1,992 | 2,557 |
Other | 6,835 | 4,656 |
Prepaid expenses and other current assets | $ 23,958 | $ 20,050 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 313,033 | $ 308,936 |
Less: Accumulated depreciation and amortization | (210,428) | (195,323) |
Property and equipment, net | 102,605 | 113,613 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 179,333 | 176,222 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 116,760 | 115,618 |
Software and licenses | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 14,349 | 14,140 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 2,591 | $ 2,956 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 9,100,000 | $ 8,800,000 | $ 18,300,000 | $ 18,100,000 |
Impairment charges of long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 |
Implementation Costs Incurred_3
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts - Deferred Implementation Costs (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Internal use of third party hosted software, gross | $ 22,568 | $ 16,612 |
Less: Accumulated amortization | (8,497) | (6,772) |
Internal use of third party hosted software, net | $ 14,071 | $ 9,840 |
Implementation Costs Incurred_4
Implementation Costs Incurred in Cloud Computing Arrangements that are Service Contracts - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Amortization expense | $ 0.7 | $ 0.5 | $ 1.7 | $ 1.1 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Accrued Expenses And Liabilities [Line Items] | ||
Accrued inventory-in-transit | $ 26,932 | $ 20,878 |
Accrued payroll and related expenses | 15,098 | 20,232 |
Accrued loyalty program | 12,914 | 13,389 |
Accrued sales return allowance | 6,042 | 6,562 |
Accrued freight | 6,570 | 5,840 |
Accrued marketing | 4,008 | 4,103 |
Accrued sales and use tax | 3,186 | 3,666 |
Accrued self-insurance liabilities | 3,294 | 2,853 |
Accrued purchases of property and equipment | 1,163 | 2,825 |
Accrued lease costs | 3,012 | 3,593 |
Term loan interest payable | 2,997 | 188 |
Other | 10,565 | 10,947 |
Accrued and other current liabilities | 106,721 | 108,847 |
Gift cards | ||
Accrued Expenses And Liabilities [Line Items] | ||
Gift cards and deferred revenue | 9,630 | 12,300 |
Deferred revenue | ||
Accrued Expenses And Liabilities [Line Items] | ||
Gift cards and deferred revenue | $ 1,310 | $ 1,471 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Leases [Abstract] | ||||
Operating (fixed) lease cost | $ 12,694 | $ 12,675 | $ 26,345 | $ 25,461 |
Short-term lease cost | 37 | 42 | 66 | 95 |
Variable lease cost | 5,334 | 5,510 | 10,476 | 8,854 |
Total lease cost | $ 18,065 | $ 18,227 | $ 36,887 | $ 34,410 |
Leases - Other Supplementary In
Leases - Other Supplementary Information Related to Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 30,025 | $ 28,742 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 8,042 | 7,157 |
Decrease in right-of-use assets resulting from operating lease modifications or remeasurements | $ 4,819 | $ 3,975 |
Weighted average remaining lease term - operating leases (in years) | 5 years | 6 years |
Weighted average discount rate - operating leases (as a percent) | 6% | 6% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 289,144 | $ 353,522 | $ 582,998 | $ 686,715 |
Apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 254,569 | 310,827 | 513,482 | 602,480 |
Non-apparel | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26,309 | 30,049 | 53,157 | 66,805 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 8,266 | $ 12,646 | $ 16,359 | $ 17,430 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Loyalty Program | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 8.6 | $ 9.3 |
Gift cards | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 4.6 | $ 5.1 |
Loyalty Program (Details)
Loyalty Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Unredeemed points, expiration period | 13 months | ||||
Unredeemed awards, expiration period | 45 days | ||||
Accrued loyalty program | $ 12,914 | $ 12,914 | $ 13,389 | ||
Reduction in net sales | $ (200) | $ 0 | $ 500 | $ (100) |
Related Party Transactions - Se
Related Party Transactions - Services Agreements with Hot Topic (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2022 | Jul. 31, 2022 | Mar. 21, 2019 | Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | |
Related Party Transaction [Line Items] | ||||||||
Accounts payable | $ 62,339 | $ 62,339 | $ 76,207 | |||||
Amended and Restated Services Agreement with Hot Topic | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Agreement term | 5 months | 3 years | ||||||
Various Services with Hot Topic | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Total costs | 500 | $ 600 | 1,100 | $ 1,200 | ||||
Accounts payable | 300 | 300 | 200 | |||||
Information Technology Services with Hot Topic | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Total costs | $ 700 | $ 1,600 | ||||||
Costs due from related party | 500 | 900 | ||||||
Due from related parties | 300 | 300 | 100 | |||||
Second Amended And Restated Services Agreement With Hot Topic | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Agreement term | 2 months | |||||||
Pass-Through Expenses With Hot Topic | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from related parties | $ 600 | $ 600 | $ 1,100 |
Related Party Transactions - Sp
Related Party Transactions - Sponsor Advisory Services Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | |
Related Party Transaction [Line Items] | |||||
Payments to related parties | $ (2,219) | $ 5,646 | |||
Strategic Planning and Other Related Services with Sycamore | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 0 | 0 | $ 0 | ||
Payments to related parties | 0 | $ 0 | |||
Reimbursement for Management Expenses with Sycamore | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Reimbursements | $ 0 | $ 0 | $ 0 | $ 0 |
Related Party Transactions - Ot
Related Party Transactions - Other Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | |
Purchase of Supplies from MGF Sourcing US, LLC | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 15.6 | $ 19.1 | $ 30.9 | $ 36.1 | |
Due from related parties | 9.8 | 9.8 | $ 11.6 | ||
Purchase of Supplies from HU Merchandising, LLC | |||||
Related Party Transaction [Line Items] | |||||
Purchases | 0.2 | $ 0.2 | 0.2 | $ 0.3 | |
Due from related parties | $ 0.1 | $ 0.1 |
Debt Financing Arrangements - S
Debt Financing Arrangements - Schedule (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Debt Instrument [Line Items] | ||
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs | $ (16,144) | $ (16,144) |
Total term loan, net of current portion and unamortized original issue discount and debt financing costs | 296,625 | 304,697 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total term loan outstanding, net of unamortized original issue discount and debt financing costs | 0 | 8,380 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Term loan | 319,375 | |
Less: current portion of unamortized original issue discount and debt financing costs | (1,356) | (1,356) |
Less: noncurrent portion of unamortized original issue discount and debt financing costs | (5,250) | (5,928) |
Total term loan outstanding, net of unamortized original issue discount and debt financing costs | 312,769 | 320,841 |
Less: current portion of term loan, net of unamortized original issue discount and debt financing costs | (16,144) | (16,144) |
Total term loan, net of current portion and unamortized original issue discount and debt financing costs | 296,625 | 304,697 |
Term Loan | New Term Loan Credit Agreement | ||
Debt Instrument [Line Items] | ||
Term loan | 319,375 | $ 328,125 |
Total term loan outstanding, net of unamortized original issue discount and debt financing costs | $ 312,800 |
Debt Financing Arrangements - M
Debt Financing Arrangements - Maturity (Details) - Term Loan $ in Thousands | Jul. 29, 2023 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 8,750 |
2024 | 17,500 |
2025 | 17,500 |
2026 | 17,500 |
2027 | 17,500 |
2028 | 240,625 |
Term loan | $ 319,375 |
Debt Financing Arrangements - N
Debt Financing Arrangements - New Term Loan Credit Agreement (Details) - Term Loan - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 14, 2021 | Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | |
Debt Instrument [Line Items] | ||||||
Interest rate | 11% | 11% | ||||
Outstanding borrowing | $ 312,769,000 | $ 312,769,000 | $ 320,841,000 | |||
New Term Loan Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate amount of debt | $ 350,000,000 | |||||
OID | 3,500,000 | |||||
Payments of financing costs | $ 6,000,000 | |||||
Fair value of long term debt | 273,100,000 | 273,100,000 | $ 267,400,000 | |||
Outstanding borrowing | 312,800,000 | 312,800,000 | ||||
Interest expense | 8,900,000 | $ 5,800,000 | 17,400,000 | $ 11,300,000 | ||
OIF and financing costs | $ 300,000 | $ 300,000 | $ 600,000 | $ 600,000 | ||
Debt term | 7 years |
Debt Financing Arrangements -_2
Debt Financing Arrangements - Senior Secured Asset-Based Revolving Credit Facility (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||||
Jul. 29, 2023 | Jul. 30, 2022 | Oct. 30, 2021 | May 02, 2020 | Feb. 03, 2018 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | Jun. 14, 2021 | Jun. 14, 2019 | Oct. 23, 2017 | May 31, 2015 | |
Existing ABL Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum restricted payment | $ 117,000,000 | $ 117,000,000 | ||||||||||
Standby letters of credit issued and outstanding | 7,400,000 | 7,400,000 | $ 7,400,000 | |||||||||
Revolving Credit Facility | Line of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Outstanding borrowing | 0 | 0 | 8,380,000 | |||||||||
Interest payments | $ 400,000 | $ 500,000 | $ 900,000 | $ 800,000 | ||||||||
Revolving Credit Facility | Original ABL Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||||
Additional borrowing capacity | $ 30,000,000 | |||||||||||
Revolving Credit Facility | Original ABL Facility | Line of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Unamortized financing costs | $ 100,000 | |||||||||||
Debt term | 5 years | |||||||||||
Revolving Credit Facility | Existing ABL Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | 100,000,000 | |||||||||||
Additional borrowing capacity | $ 30,000,000 | |||||||||||
Interest rate at end of period | 9% | 9% | ||||||||||
Availability | $ 130,300,000 | $ 130,300,000 | 134,200,000 | |||||||||
Revolving Credit Facility | Existing ABL Facility | Line of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Outstanding borrowing | 0 | 0 | $ 8,400,000 | |||||||||
Financing costs incurred | $ 500,000 | |||||||||||
Amortization of financing costs | $ 0 | $ 0 | $ 100,000 | $ 100,000 | ||||||||
Revolving Credit Facility | Existing ABL Facility, First Amendment | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 70,000,000 | |||||||||||
Revolving Credit Facility | Existing ABL Facility, First Amendment | Line of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Write off | $ 100,000 | |||||||||||
Revolving Credit Facility | Existing ABL Facility, Third Amendment | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 150,000,000 | |||||||||||
Revolving Credit Facility | Existing ABL Facility, Third Amendment | Line of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Financing costs incurred | $ 700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 4,042 | $ 9,961 | $ 8,769 | $ 19,344 | |
Effective tax rate | 37.90% | 30.50% | 32.20% | 29.30% | |
Unrecognized tax benefits including interest and penalties | $ 3,800 | $ 3,800 | $ 3,800 | ||
Unrecognized tax benefits, net | 3,300 | 3,300 | $ 3,300 | ||
Decrease in unrecognized tax benefits is reasonably possible | 1,700 | 1,700 | |||
Decrease in unrecognized tax benefits is reasonably possible, net | $ 1,600 | $ 1,600 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | $ 1,908 | $ 2,175 | $ 4,396 | $ 4,655 |
Income tax (benefit) detriment | (114) | 192 | (422) | 33 |
Net share-based compensation expense | 1,794 | 2,367 | 3,974 | 4,688 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | 491 | 253 | 1,131 | 754 |
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | 755 | 1,613 | 1,700 | 3,290 |
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | 106 | 110 | 387 | 110 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | 280 | 169 | 715 | 363 |
Restricted cash units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | 246 | 0 | 357 | 0 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation before income taxes | $ 30 | $ 30 | $ 106 | $ 138 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Millions | 6 Months Ended |
Jul. 29, 2023 USD ($) | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 6.8 |
Unvested awards, weighted average period for recognition | 2 years 9 months 18 days |
Award vesting period | 4 years |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 0.4 |
Unvested awards, weighted average period for recognition | 4 months 24 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 5.2 |
Unvested awards, weighted average period for recognition | 3 years 3 months 18 days |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units Activity And Performance Stock Units Activity (Details) - Restricted stock units shares in Thousands | 6 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Shares | |
Nonvested, beginning balance (in shares) | shares | 1,386 |
Granted (in shares) | shares | 1,125 |
Vested (in shares) | shares | (163) |
Forfeited (in shares) | shares | (437) |
Nonvested, ending balance (in shares) | shares | 1,911 |
Weighted average grant date fair value per share | |
Nonvested, beginning balance (in USD per share) | $ / shares | $ 6.55 |
Granted (in USD per share) | $ / shares | 2.93 |
Vested (in USD per share) | $ / shares | 10.34 |
Forfeited (in USD per share) | $ / shares | 5.74 |
Nonvested, ending balance (in USD per share) | $ / shares | $ 4.28 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards shares in Thousands | 6 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Shares | |
Nonvested, beginning balance (in shares) | shares | 211 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (72) |
Forfeited (in shares) | shares | (104) |
Nonvested, ending balance (in shares) | shares | 35 |
Weighted average grant date fair value per share | |
Nonvested, beginning balance (in USD per share) | $ / shares | $ 27 |
Granted (in USD per share) | $ / shares | |
Vested (in USD per share) | $ / shares | 27 |
Forfeited (in USD per share) | $ / shares | 27 |
Nonvested, ending balance (in USD per share) | $ / shares | $ 27 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 29, 2023 | Jul. 29, 2023 | Jan. 28, 2023 | |
Shares | |||
Options outstanding, beginning balance (in shares) | 1,444 | 1,444 | |
Granted (in shares) | 1,370 | ||
Exercised (in shares) | 0 | ||
Expired / forfeited (in shares) | (477) | ||
Options outstanding, ending balance (in shares) | 2,337 | ||
Exercisable (in shares) | 191 | ||
Weighted average exercise price per share | |||
Outstanding, beginning balance (in USD per share) | $ 7.38 | $ 7.38 | |
Granted (in USD per share) | 3.26 | ||
Expired / forfeited (in USD per share) | 5.70 | ||
Outstanding, ending balance (in USD per share) | 5.30 | ||
Exercisable, weighted average exercise price per share (in dollars per share) | $ 11.88 | ||
Stock Options Additional Disclosures | |||
Weighted average remaining contractual life (years) | 9 years 4 months 24 days | 9 years 2 months 12 days | |
Exercisable, weighted average remaining contractual life (years) | 8 years 2 months 12 days | ||
Aggregate intrinsic value | $ 0 | $ 115 | |
Exercisable, aggregate intrinsic value | $ 0 |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - $ / shares | Jul. 29, 2023 | Jan. 28, 2023 |
Equity [Abstract] | ||
Common shares, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | |
Preferred stock, par value (in USD per share) | $ 0.01 | |
Common stock, issued (in shares) | 104,044,344 | 103,774,813 |
Common stock, outstanding (in shares) | 104,044,344 | 103,774,813 |
Preferred stock, issued (in shares) | 0 | |
Preferred stock, outstanding (in shares) | 0 |
Share Repurchases - Narrative (
Share Repurchases - Narrative (Details) - USD ($) | Jul. 29, 2023 | Dec. 06, 2021 |
Equity [Abstract] | ||
Share repurchase program (up to) | $ 100,000,000 | |
Remaining share repurchase program | $ 44,900,000 |
Share Repurchases - Share Repur
Share Repurchases - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2023 | Jul. 30, 2022 | Apr. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Equity [Abstract] | |||||
Repurchases and retirement of common stock (in shares) | 0 | 1,545,811 | 0 | 4,464,367 | |
Total cost | $ 0 | $ 8,835 | $ 22,865 | $ 0 | $ 31,700 |
Average per share cost including commissions (in USD per share) | $ 5.72 | $ 7.10 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common share equivalents outstanding, included in computation of diluted EPS (in shares) | 0.2 | 0.1 | 0.2 | 0.1 |
Restricted stock awards, RSUs, & PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common share equivalents outstanding, excluded from computation of diluted EPS (in shares) | 1.3 | 0.9 | 1.3 | 0.7 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common share equivalents outstanding, excluded from computation of diluted EPS (in shares) | 2.5 | 0.7 | 2.3 | 0.6 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jul. 29, 2023 | Jan. 28, 2023 |
Assets: | ||
Total assets | $ 2,558 | $ 29 |
Liabilities: | ||
Deferred compensation plan liability (noncurrent) | 4,854 | 4,246 |
Total liabilities | 4,854 | 4,246 |
Money market funds (cash equivalent) | ||
Assets: | ||
Money market funds (cash equivalent) | 2,558 | 29 |
Quoted Prices in Active Markets for Identical Items (Level 1) | ||
Assets: | ||
Total assets | 2,558 | 29 |
Liabilities: | ||
Deferred compensation plan liability (noncurrent) | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Items (Level 1) | Money market funds (cash equivalent) | ||
Assets: | ||
Money market funds (cash equivalent) | 2,558 | 29 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Deferred compensation plan liability (noncurrent) | 4,854 | 4,246 |
Total liabilities | 4,854 | 4,246 |
Significant Other Observable Inputs (Level 2) | Money market funds (cash equivalent) | ||
Assets: | ||
Money market funds (cash equivalent) | 0 | 0 |
Significant Unobservable Inputs (Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Deferred compensation plan liability (noncurrent) | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3 | Money market funds (cash equivalent) | ||
Assets: | ||
Money market funds (cash equivalent) | $ 0 | $ 0 |
Deferred Compensation Plan (Det
Deferred Compensation Plan (Details) - USD ($) | 6 Months Ended | |
Jul. 29, 2023 | Jan. 28, 2023 | |
Compensation Related Costs [Abstract] | ||
Percentage of maximum annual deferral | 80% | |
Percentage of annual earned bonus eligible for contribution | 100% | |
Percentage of contributions vested from outset | 100% | |
Employer matching contribution, percent of match | 50% | |
Percentage of eligible contributions | 4% | |
Deferred compensation plan assets | $ 0 | $ 0 |
Deferred compensation liabilities | 5,200,000 | 5,600,000 |
Current deferred compensation liabilities | $ 300,000 | $ 1,400,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 USD ($) | Jul. 30, 2022 USD ($) | Jul. 29, 2023 USD ($) hour | Jul. 30, 2022 USD ($) | |
Retirement Benefits [Abstract] | ||||
Defined contribution plan, tax status | Qualified Plan [Member] | |||
Required number of hours | hour | 200 | |||
Age requirement | 21 years | |||
Percentage of maximum employee contribution | 80% | |||
Employer matching contribution, percent of match | 50% | |||
Employer matching contribution, percent of participants' eligible contribution | 4% | |||
Contributions | $ | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 |