Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Mar. 24, 2014 | Jun. 28, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'CACHE INC | ' | ' |
Entity Central Index Key | '0000350199 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $58 |
Entity Common Stock, Shares Outstanding | ' | 21,617,447 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
CURRENT ASSETS | ' | ' |
Cash and equivalents (Note 1) | $4,513,000 | $12,360,000 |
Marketable securities (Note 2) | ' | 3,013,000 |
Certificates of deposit-restricted (Note 7) | ' | 3,000,000 |
Receivables, net (Note 3) | 2,806,000 | 2,200,000 |
Income tax receivable (Note 3) | ' | 184,000 |
Inventories, net (Note 4) | 23,673,000 | 21,246,000 |
Prepaid expenses and other current assets (Note 11) | 1,272,000 | 2,224,000 |
Total Current Assets | 32,264,000 | 44,227,000 |
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net (Notes 5 and 8) | 18,221,000 | 20,177,000 |
INTANGIBLE ASSETS, net | 102,000 | 102,000 |
OTHER ASSETS (Notes 7 and 11) | 1,384,000 | 10,119,000 |
Total Assets | 51,971,000 | 74,625,000 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 10,856,000 | 12,397,000 |
Accrued compensation | 4,317,000 | 2,615,000 |
Accrued liabilities (Note 6) | 11,197,000 | 11,795,000 |
Total Current Liabilities | 26,370,000 | 26,807,000 |
OTHER LIABILITIES (Note 9) | 8,818,000 | 8,777,000 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value $.01; authorized, 40,000,000 shares; issued 25,220,092 and 17,093,788 shares (Note 12) | 252,000 | 171,000 |
Additional paid-in capital | 60,830,000 | 48,735,000 |
Retained earnings (accumulated deficit) | -4,504,000 | 29,930,000 |
Treasury stock, 3,682,199 shares, at cost (Note 12) | -39,795,000 | -39,795,000 |
Total Stockholders' Equity | 16,783,000 | 39,041,000 |
Total Liabilities and Stockholders' Equity | $51,971,000 | $74,625,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued shares | 25,220,092 | 17,093,788 |
Treasury stock, shares | 3,682,199 | 3,682,199 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
NET SALES | $216,700,000 | $224,210,000 | $223,880,000 |
COST OF SALES, including buying and occupancy | 143,301,000 | 140,299,000 | 127,461,000 |
GROSS PROFIT | 73,399,000 | 83,911,000 | 96,419,000 |
EXPENSES | ' | ' | ' |
Store operating expenses | 73,762,000 | 77,687,000 | 76,024,000 |
General and administrative expenses | 19,497,000 | 17,978,000 | 17,310,000 |
Employee separation charges | 3,198,000 | 564,000 | 118,000 |
Impairment charges (Notes 1 and 8) | 1,040,000 | 1,118,000 | 719,000 |
TOTAL EXPENSES | 97,497,000 | 97,347,000 | 94,171,000 |
OPERATING INCOME (LOSS) | -24,098,000 | -13,436,000 | 2,248,000 |
OTHER INCOME (EXPENSE) | ' | ' | ' |
Amortization of deferred financing cost (Note 7) | -91,000 | ' | ' |
Interest expense | ' | ' | -70,000 |
Interest income | 23,000 | 73,000 | 87,000 |
TOTAL OTHER INCOME (EXPENSE) | -68,000 | 73,000 | 17,000 |
INCOME (LOSS) BEFORE INCOME TAXES | -24,166,000 | -13,363,000 | 2,265,000 |
INCOME TAX PROVISION (BENEFIT) (Note 11) | 10,268,000 | -1,285,000 | 184,000 |
NET INCOME (LOSS) | ($34,434,000) | ($12,078,000) | $2,081,000 |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | ($1.87) | ($0.94) | $0.16 |
DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | ($1.87) | ($0.94) | $0.16 |
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING (in shares) | 18,365,000 | 12,887,000 | 12,838,000 |
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (in shares) | 18,365,000 | 12,887,000 | 12,884,000 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings/(Accumulated Deficit) | Treasury Stock |
Balance at Jan. 01, 2011 | $48,312,000 | $168,000 | $48,012,000 | $39,927,000 | ($39,795,000) |
Balance (in shares) at Jan. 01, 2011 | ' | ' | ' | ' | 3,682,199 |
Balance (in shares) at Jan. 01, 2011 | ' | 16,766,365 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | 2,081,000 | ' | ' | 2,081,000 | ' |
Issuance of common stock | 109,000 | 4,000 | 105,000 | ' | ' |
Issuance of common stock (in shares) | ' | 394,200 | ' | ' | ' |
Forfeiture of restricted stock | ' | -1,000 | 1,000 | ' | ' |
Forfeiture of restricted stock (in shares) | ' | -62,999 | ' | ' | ' |
Stock based compensation | 295,000 | ' | 295,000 | ' | ' |
Balance at Dec. 31, 2011 | 50,797,000 | 171,000 | 48,413,000 | 42,008,000 | -39,795,000 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | ' | 3,682,199 |
Balance (in shares) at Dec. 31, 2011 | ' | 17,097,566 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | -12,078,000 | ' | ' | -12,078,000 | ' |
Issuance of common stock | 94,000 | ' | 94,000 | ' | ' |
Issuance of common stock (in shares) | ' | 26,000 | ' | ' | ' |
Forfeiture of restricted stock (in shares) | ' | -29,778 | ' | ' | ' |
Stock based compensation | 228,000 | ' | 228,000 | ' | ' |
Balance at Dec. 29, 2012 | 39,041,000 | 171,000 | 48,735,000 | 29,930,000 | -39,795,000 |
Balance (in shares) at Dec. 29, 2012 | 3,682,199 | ' | ' | ' | 3,682,199 |
Balance (in shares) at Dec. 29, 2012 | 17,093,788 | 17,093,788 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | -34,434,000 | ' | ' | -34,434,000 | ' |
Issuance of common stock | 188,000 | 4,000 | 184,000 | ' | ' |
Issuance of common stock (in shares) | ' | 430,000 | ' | ' | ' |
Issuance of common stock from rights offering, net of issuance costs of $2,118,000 | 11,301,000 | 81,000 | 11,220,000 | ' | ' |
Issuance of common stock from rights offering, net of issuance costs of $2,118,000 (in shares) | ' | 8,132,917 | ' | ' | ' |
Forfeiture of restricted stock | ' | -4,000 | 4,000 | ' | ' |
Forfeiture of restricted stock (in shares) | ' | -436,613 | ' | ' | ' |
Stock based compensation | 687,000 | ' | 687,000 | ' | ' |
Balance at Dec. 28, 2013 | $16,783,000 | $252,000 | $60,830,000 | ($4,504,000) | ($39,795,000) |
Balance (in shares) at Dec. 28, 2013 | 3,682,199 | ' | ' | ' | 3,682,199 |
Balance (in shares) at Dec. 28, 2013 | 25,220,092 | 25,220,092 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended |
Dec. 28, 2013 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ' |
Issuance costs | $2,118,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Cash flows From Operating Activities: | ' | ' | ' |
Net income (loss) | ($34,434,000) | ($12,078,000) | $2,081,000 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 7,047,000 | 7,176,000 | 7,784,000 |
Impairment charges | 1,040,000 | 1,118,000 | 719,000 |
Gain on the settlement of note payable | ' | ' | -345,000 |
Deferred income taxes | 10,209,000 | -1,364,000 | 434,000 |
Amortization of deferred rent | -1,277,000 | -1,963,000 | -2,405,000 |
Amortization of deferred income for co-branded credit card | -388,000 | -1,159,000 | -904,000 |
Amortization of deferred financing costs | 91,000 | ' | ' |
Gift card breakage | -242,000 | -275,000 | -642,000 |
Stock-based compensation | 782,000 | 322,000 | 381,000 |
Non-cash interest expense on note payable | ' | ' | 71,000 |
Gain from insurance proceeds | ' | ' | -41,000 |
Proceeds from insurance recovery | ' | 130,000 | 80,000 |
Change in assets and liabilities: | ' | ' | ' |
Decrease (increase) in receivables and income tax receivable | -422,000 | 972,000 | -770,000 |
Decrease (increase) in inventories | -2,427,000 | 829,000 | -6,286,000 |
Decrease (increase) in prepaid expenses and other assets | 469,000 | -529,000 | 3,526,000 |
Decrease (increase) in accounts payable | -1,541,000 | 2,832,000 | 1,292,000 |
Increase in accrued liabilities, accrued compensation and other liabilities | 3,554,000 | 1,736,000 | 796,000 |
Net cash provided by (used in) operating activities | -17,539,000 | -2,253,000 | 5,771,000 |
Cash Flows From Investing Activities: | ' | ' | ' |
Purchase of marketable securities | -2,000,000 | -9,047,000 | -6,093,000 |
Maturities of marketable securities | 5,013,000 | 10,042,000 | 23,008,000 |
Certificates of deposit-restricted | 3,000,000 | ' | -500,000 |
Purchase of equipment and leasehold improvements | -6,633,000 | -8,970,000 | -2,817,000 |
Proceeds from insurance recovery | ' | 79,000 | 71,000 |
Net cash provided by (used in) investing activities | -620,000 | -7,896,000 | 13,669,000 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from the issuance of common stock | 13,512,000 | ' | 23,000 |
Payment of issuance costs | -2,118,000 | ' | ' |
Payments of deferred financing costs | -1,082,000 | ' | ' |
Repayment of note payable | ' | ' | -1,563,000 |
Net cash provided by (used in) financing activities | 10,312,000 | ' | -1,540,000 |
Net increase (decrease) in cash and equivalents | -7,847,000 | -10,149,000 | 17,900,000 |
Cash and equivalents, at beginning of period | 12,360,000 | 22,509,000 | 4,609,000 |
Cash and equivalents, at end of period | $4,513,000 | $12,360,000 | $22,509,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Business | |
        Cache, Inc. (together with its subsidiaries, the "Company") operates 250 women's apparel specialty stores, as of December 28, 2013. The Company specializes in the sale of high fashion women's apparel and accessories in the better to expensive price range. | |
Basis of Consolidation | |
        The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates in the Preparation of Financial Statements | |
        The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
        The most significant estimates made by management include those made in the areas of inventory; impairment of long lived assets; income taxes; valuation allowance on deferred tax assets; self insurance reserves; stock-based compensation, gift card breakage, sales returns and allowances and income tax uncertainties. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. | |
Fiscal Reporting Period | |
        The Company reports its annual results of operations based on fiscal periods comprised of 52 or 53 weeks, which is in accordance with industry practice. Results for each of fiscal 2013, 2012, and 2011 included 52 weeks. | |
Reclassifications | |
        Reclassifications related to Employee Separation Charges have been made to fiscal 2012 and 2011 financial statements to conform to fiscal 2013 presentation. | |
Fair Value of Financial Instruments | |
        The carrying amounts of certificates of deposit, accounts receivable, accounts payable and accrued liabilities approximate their estimated fair values due to their short-term nature. | |
Cash and Equivalents | |
        The Company considers all highly liquid investments that mature within three months or less when purchased to be cash equivalents. | |
Marketable Securities | |
        Marketable securities, at December 29, 2012, primarily consisted of short-term certificates of deposit. The Company classifies its short-term investments as held-to-maturity. Held-to-maturity securities are those securities in which the Company has the ability and intent to hold the securities until maturity. Because the Company's held-to-maturity securities mature within one year of the purchase date, the securities are classified as short-term marketable securities. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts and such carrying values approximate fair value. A decline in the market value of any held-to-maturity security below cost, that is deemed to be other than temporary, results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. No impairment has occurred for the fiscal periods presented herein. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity investments, as an adjustment to yield using the effective interest method. Interest income is recognized when earned. The fair value of our marketable securities totaled approximately $3.0 million as of December 29, 2012. The Company had no marketable securities as of December 28, 2013. | |
Allowance for Doubtful Accounts | |
        The allowance for doubtful accounts, which is regularly reviewed, is an estimate of the amount of probable credit losses in the existing accounts receivable. The allowance is determined based on historical write-off experience and the current retailer environment. Balances over 90 days past due and over a specified amount are reviewed individually for collectability; other balances are considered on an aggregate basis considering the aging of balances. Account balances are written off against the allowance when it is probable the receivable will not be recovered. There is no off-balance sheet credit exposure related to the Company's customers. At December 28, 2013 and December 29, 2012, reserves for doubtful accounts were immaterial. | |
Inventories | |
        Our retail finished goods inventories are valued at the lower of cost or market using the retail inventory method. Under the retail inventory method ("RIM"), the valuation of inventories at cost and the resulting gross margins are calculated by applying a calculated cost to retail ratio to the retail value of inventories. RIM is an averaging method that is used in the retail industry due to its practicality. Additionally, it is recognized that the use of RIM will result in valuing inventories at the lower of cost or market if markdowns are currently taken as a reduction of the retail value of inventories. Inherent in the RIM calculation are certain significant management judgments including, among others, merchandise markon, markups, and markdowns, which significantly impact the ending inventory valuation at cost as well as the resulting gross margins. We take markdowns due to changes in fashion and style, based on the following factors: (i) supply on hand, (ii) historical experience and (iii) our expectations as to future sales. We do not anticipate any significant change in our markdown strategy that would cause a significant change in our financial results. We believe that our RIM provides an inventory valuation which results in a carrying value at the lower of cost or market. Inventories other than finished goods at retail stores, called production inventory, primarily consists of piece goods, trim and work-in-process. The Company values production inventory at the lower of cost or market value using first-in-first-out valuation method. The Company reviews the inventory for factors such as age, obsolescence, potential use, or other factors that may indicate a decline in its value. The Company records a reserve against the cost of the production inventory to account for any decline in its value. | |
Equipment and Leasehold Improvements | |
        Equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, which generally range from three to 10 years. For income tax purposes, accelerated methods are generally used. Leasehold improvements are amortized over the shorter of their useful life or lease term. | |
        The Company evaluates finite-lived assets in accordance with "Impairment or Disposal of Long-Lived Assets" under Topic 360 "Property, Plant and Equipment" of the Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC"). Finite-lived assets are evaluated for recoverability whenever events or changes in circumstances indicate that an asset may have been impaired. In evaluating an asset for recoverability, the Company estimates the future cash flows expected to result from the use and eventual disposition of the asset. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss, equal to the excess of the carrying amount over the fair market value of the asset is recognized. Various factors including future sales growth and profit margins are included in this analysis. To the extent these future projections or strategies change, the conclusion regarding impairment may differ from the current estimates (See Note 8). | |
Intangible Assets | |
        Intangible assets consist of various trade names associated with the Cache name. The Company evaluates its intangible assets in accordance with "Intangibles—Goodwill and Other", Topic 350 of the FASB ASC. | |
Self Insurance | |
        We are self-insured for losses and liabilities related primarily to employee health and welfare claims, up to certain thresholds. Losses are accrued based upon our estimates of the aggregate liability for claims incurred, using certain actuarial assumptions followed in the insurance industry and based on Company experience. Adjustments to earnings resulting from changes in historical loss trends were not significant for fiscal 2013 and 2012. The Company's earnings were impacted by an increase in employee health and welfare claims of $499,000 for fiscal 2011. We maintain stop loss insurance coverage, which covers us for benefits paid in excess of limits as defined in the plan. Therefore we do not anticipate any significant change in loss trends, settlements or other costs that would cause a significant change in earnings. | |
Gift Cards, Gift Certificates and Credits | |
        The Company sells gift cards and gift certificates ("Gift Cards") and issues credits to its customers when merchandise is returned ("Merchandise Credits"), which do not expire. The Company recognizes sales from Gift Cards when they are redeemed by the customer and income when the likelihood of the Gift Card and Merchandise Credit being redeemed by the customer is remote ("Gift Card breakage"), since the Company has determined that it does not have a legal obligation to remit the unredeemed value to the relevant jurisdiction as abandoned property. The Company determines Gift Card breakage income based upon historical redemption patterns of its Merchandise Credits and Gift Cards. The Company has determined based on these historical redemption rates that approximately 5% of its Merchandise Credits issued and approximately 3% of its Gift Cards issued will remain unredeemed. The Company is recognizing the estimated unredeemed Merchandise Credits and Gift Cards over a fourteen quarter period with 64% recognized in the first quarter to 0.03% in the fourteenth quarter subsequent to the issue date. The Company has determined that redemption would be remote based on the fact that, by the fourteenth quarter since issue date, the redemption rate approximated 0%, indicating that the probability of such merchandise credits and gift cards being redeemed is remote. As such, we have recorded breakage income based upon the above criteria. Breakage income represents the balance of Gift Cards and Merchandise Credits for which the Company believes the likelihood of redemption by the customer is remote. | |
        The Company recorded breakage income of $242,000, $275,000 and $642,000 during fiscal years ended 2013, 2012 and 2011, respectively. | |
Revenue Recognition | |
        Sales are recognized at the "point of sale," which occurs when merchandise is sold in an "over-the-counter" transaction or upon receipt by a customer. Sales of merchandise via our website and the related amounts billed to customers for shipping and handling fees which are included in net sales are recognized at the expected time of delivery to the customer. Our customers have the right to return merchandise. Sales are reported net of actual and estimated returns. We maintain a reserve for potential product returns and record, as a reduction to sales, a provision for estimated product returns, which is determined based on historical experience. The Company recorded a net increase in sales return reserve of approximately $175,000 and $34,000 for fiscal 2013 and 2012, respectively. The Company recorded a net decrease in sales return reserve of approximately $96,000 for fiscal 2011. Costs incurred for shipping and handling are included in cost of sales. The Company records revenues net of applicable sales tax. | |
        The Company's co-branded customer credit card program entitles the Company to receive from the issuing bank a non-refundable credit card activation fee for each new account that is opened and activated. These fees are initially deferred and recognized in consolidated net sales as revenue over the life of the contract, which was amended on March 1, 2013 for a period of seven years. During fiscal 2013, 2012 and 2011, the Company received $221,000, $363,000 and $745,000, respectively, in connection with activated credit cards. The amount of fee income recorded in connection with activated credit cards in fiscal 2013, 2012 and 2011 was $388,000, $1.2 million and $904,000, respectively. | |
        The Company also receives from the issuing bank and Visa U.S.A Inc. a sales royalty, which is based on a percentage of net purchases made by cardholders at Cache or other businesses. Cache has determined that since it has not incurred any significant or recurring costs in relation to the co-branded credit card program, the sales royalties earned in connection to the agreement will be recorded under net sales. The fees that are incurred by the Company are cardholder incentives, which are funded from the fees paid by the issuing bank and Visa U.S.A Inc. The amount of sales royalty income recorded in fiscal 2013, 2012 and 2011 was $455,000, $452,000 and $425,000, respectively. | |
        The Company also offers its credit card holders a program, whereby points can be earned on net purchases made with the co-branded credit card. Five reward points are awarded for each dollar spent at Cache and one reward point is awarded for each dollar spent at non-Cache businesses. Cardholders whose credit card account are not delinquent, in default or closed will be automatically eligible to receive a $25 Cache gift card upon accrual of 2,500 reward points. Effective March 1, 2013, the issuing bank pays the Company 70% of the Company gift cards issued to the bank. All other costs associated with the gift card reward program are the responsibility of the bank. | |
        Seasonality.    We experience seasonal and quarterly fluctuations in our net sales and operating income. Our quarterly results of operations may fluctuate significantly as a result of a variety of factors, including the timing of new store openings, fashion trends and shifts in timing of certain holidays. Our business is subject to seasonal influences with highest sales during our second and fourth fiscal quarters and lowest sales during our first and third fiscal quarters. | |
Operating Leases | |
        The Company leases retail stores and office space under operating leases. Most leases contain construction allowance reimbursements by landlords, rent holidays, rent escalation clauses and/or contingent rent provisions. The Company recognizes the related rental expense on a straight-line basis over the lease term and records the difference between the amounts charged to expense and the rent paid as a deferred rent liability. | |
        To account for construction allowance reimbursements from landlords and rent holidays, the Company records a deferred rent liability included in other long-term liabilities on the consolidated balance sheets and amortizes the deferred rent over the lease term, as a reduction to rent expense on the consolidated statements of operations. For leases containing rent escalation clauses, the Company records minimum rent expense on a straight-line basis over the lease term on the consolidated statement of operations. The lease term used for lease evaluation includes option periods only in instances in which the exercise of the option period can be reasonably assured and failure to exercise such options would result in an economic penalty to the Company. | |
Advertising costs | |
        Costs associated with advertising are charged to store operating expense, when the advertising first takes place. The Company incurred $5.9 million, $8.6 million and $6.6 million for advertising costs in fiscal 2013, 2012 and 2011, respectively. | |
Pre-Opening Store Expenses | |
        Expenses associated with the opening of new stores are expensed as incurred. | |
Cache 401(K) Savings Plan | |
        Employees are eligible to participate in the Company's 401(k) plan if they have been employed by the Company for one year, have reached age 21 and work at least 1,000 hours annually. Generally, employees can defer up to 25% of their gross wages up to the maximum limit allowable under the Internal Revenue Code. The Company can make a discretionary matching contribution for the employee. Employer contributions to the plan for fiscal 2013, 2012 and 2011 were $89,000, $118,000 and $104,000, respectively. | |
Income Taxes | |
        The Company accounts for income taxes in accordance with "Income Taxes" Topic 740 of the FASB ASC. This statement requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using applicable tax rates for the years in which the differences are expected to reverse. When tax contingencies become probable, a liability for the contingent amount is estimated based upon the Company's best estimation of the potential exposures associated with the timing and amount of deductions, as well as various tax filing positions (See Note 11). | |
Stock-Based Compensation | |
        Stock-based compensation expense for all stock-based awards program, including grants of stock options, is recorded in accordance with "Compensation—Stock Compensation", Topic 718 of the FASB ASC. The grant date fair value for stock options is calculated using the Black- Scholes option valuation model. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. All employee stock options were granted at or above the grant date market price. Judgment is required in estimating the amount of share- based awards expected to be forfeited prior to vesting. In accordance with the stated guidance, if actual forfeitures differ significantly from these estimates, share-based compensation expense could be materially impacted (See Note 12). The Company recognized $782,000, $322,000 and $381,000 in stock-based compensation expense during fiscal 2013, 2012 and 2011, respectively. | |
Earnings (Loss) Per Share | |
        Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share also includes the dilutive effect of potential common shares (dilutive stock options and unvested restricted common shares) outstanding during the period. | |
Comprehensive Income | |
        The Company reports comprehensive income in accordance with "Comprehensive Income", Topic 220 of the FASB ASC. This guidance provides standards for the reporting and display of comprehensive income. Components of comprehensive income could include net income, foreign currency translation adjustments and gains or losses associated with investments available for sale. There was no difference between net income and comprehensive income for any of the periods presented. | |
Segment Reporting | |
        Topic 280 "Segment Reporting", of the FASB ASC establishes standards for reporting information about a company's operating segments. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company operates in a single operating segment—the operation of specialty retail stores. Revenues from external customers are derived from merchandise sales and we do not rely on any major customers as a source of revenue. | |
Concentration | |
        The Company has five major suppliers, which accounted for approximately 36% of our purchases during fiscal 2013, and our largest supplier accounted for 12% of our purchases during fiscal 2013. The loss of any of these suppliers could adversely affect the Company's operations. | |
Recent Accounting Developments | |
        In July 2013, the FASB issued Accounting Standards Update ("ASU") 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to clarify the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2013. The Company early adopted this ASU and it did not have a material impact on its consolidated financial statements. | |
        In February 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. For public entities, the amendments in ASU 2013-02 are effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Company's consolidated financial statements. | |
        In July 2012, the FASB issued ASU 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. Under these amendments, an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on the Company's consolidated financial statements. | |
Supplemental Statements of Cash Flow Information | |
        During fiscal 2013, 2012 and 2011, the Company paid $115,000, $209,000 and $337,000 in income taxes, respectively. During 2011, the Company accrued $70,000 and paid $94,000 for interest expense on a note payable which was settled during fiscal 2011. In addition, during fiscal 2013, 2012 and 2011, the Company accrued equipment and leasehold improvements of $262,000, $764,000 and $199,000, respectively. | |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 28, 2013 | |
FAIR VALUE MEASUREMENT | ' |
FAIR VALUE MEASUREMENT | ' |
NOTE 2. FAIR VALUE MEASUREMENT | |
        "Fair Value Measurement", Topic 820 of the FASB ASC, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Topic 820 of the FASB ASC establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |
• | |
Level 1—Unadjusted quoted market prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
• | |
Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
• | |
Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing assets or liabilities based on the best information available. | |
        "Financial Instruments", Topic 825 of the FASB ASC, provides entities the option to measure many financial instruments and certain other items at fair value. Entities that choose the fair value option will recognize unrealized gains and losses on items for which the fair value option was elected in earnings at each subsequent reporting date. The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with Topic 825 of the FASB ASC. | |
        The fair value of our marketable securities, which consist of certificates of deposits (maturing greater than 90 days and less than one year) were determined based upon Level 1 inputs, totaled $3.0 million, as of December 29, 2012. The Company had no marketable securities as of December 28, 2013. The Company noted small variances between the book value and fair value due to the remaining unamortized premiums. As a result, no impairment has occurred for the fiscal periods presented herein. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity investments. Interest income is recognized when earned. | |
RECEIVABLES
RECEIVABLES | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
RECEIVABLES | ' | |||||||
RECEIVABLES | ' | |||||||
NOTE 3. RECEIVABLES | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Construction allowances | $ | 430,000 | $ | 137,000 | ||||
Third party credit cards | 1,674,000 | 1,622,000 | ||||||
Other | 702,000 | 441,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 2,806,000 | $ | 2,200,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
        At December 29, 2012, the Company recorded an income tax receivable of $184,000, which resulted from quarterly federal and state estimated tax payments. | ||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
NOTE 4. INVENTORIES | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 935,000 | $ | 1,014,000 | ||||
Work in process | 1,918,000 | 2,237,000 | ||||||
Finished goods | 20,820,000 | 17,995,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 23,673,000 | $ | 21,246,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
EQUIPMENT_AND_LEASEHOLD_IMPROV
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | |||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | |||||||
NOTE 5. EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Leasehold improvements | $ | 45,899,000 | $ | 47,734,000 | ||||
Furniture, fixtures, and equipment | 40,931,000 | 39,571,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
86,830,000 | 87,305,000 | |||||||
Less: accumulated depreciation and amortization | (68,609,000 | ) | (67,128,000 | ) | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 18,221,000 | $ | 20,177,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
        Store operating and general and administrative expenses include depreciation and amortization expense of $7.0 million, $7.2 million and $7.8 million for the fiscal years ended 2013, 2012 and 2011, respectively. The Company recorded an impairment charge during fiscal 2013, 2012 and 2011 on its long lived assets; see Note 8 herein for additional details. The Company closed seven stores in early fiscal 2014 and as a result recorded accelerated depreciation of $16,000 in fiscal 2013. | ||||||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
ACCRUED LIABILITIES | ' | |||||||
NOTE 6. ACCRUED LIABILITIES | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Gift cards, merchandise credit cards and other customer deposits and credits | $ | 4,670,000 | $ | 4,118,000 | ||||
Taxes, including income taxes | 2,418,000 | 2,130,000 | ||||||
Operating expenses | 2,395,000 | 2,502,000 | ||||||
Sales return reserve | 660,000 | 485,000 | ||||||
Group insurance | 556,000 | 581,000 | ||||||
Fixed asset additions | 262,000 | 764,000 | ||||||
Deferred income—co-branded credit card program | 236,000 | 1,215,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 11,197,000 | $ | 11,795,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
CREDIT_FACILITY
CREDIT FACILITY | 12 Months Ended |
Dec. 28, 2013 | |
CREDIT FACILITY | ' |
CREDIT FACILITY | ' |
NOTE 7. CREDIT FACILITY | |
        The Company had a $3.0 million credit facility with the Bank of America, which expired May 31, 2013. The agreement allowed the Company to issue letters of credit up to $3.0 million and was collateralized by a security interest in various certificates of deposit held by the Company. As of December 29, 2012, the Company had $3,000,000 of certificates of deposit collateralized for the outstanding letters of credit with Bank of America. These certificates of deposit were reported as restricted funds. As letters of credit are drawn upon or replaced through our new credit facility described below, the restricted funds were released. There are no longer any outstanding letters of credit under this facility. | |
        On July 25, 2013, we entered into a new five year credit agreement ("credit agreement") with Wells Fargo Bank, National Association (the "Bank"). The credit facility ("Credit Facility") provides the Company with a line of credit of $25 million for short term borrowings and letters of credit with a sublimit of $5.0 million. Short term borrowings are limited to the lower of the line of credit available or the borrowing base available as defined in the Credit Agreement. Any borrowings that the Company may incur in the future under the Credit Facility are due and payable on July 25, 2018, at which time the facility terminates. | |
        Borrowings under the Credit Facility bear interest, at the Company's option, either at the London interbank offering rate ("LIBOR") Margin or at the Base Rate Margin. LIBOR Margin is equal to LIBOR plus a margin of 1.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% of the borrowing base, the LIBOR Margin is equal to LIBOR, plus a margin of 1.75% per annum. Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% the Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.75% per annum. The base rate, as defined in the Credit Agreement, is a fluctuating rate per annum equal to the highest of (a) the U. S. federal funds rate, plus a margin of 0.50% per annum, (b) the adjusted LIBOR rate plus a margin of 1.00% or (c) the Wells Fargo prime rate in effect at that time. | |
        The obligations of the Company under the Credit Facility are secured by liens on all assets of the Company. The Credit Agreement contains various customary covenants, including, but not limited to, limitations on indebtedness, liens, investments, dividends or other capital distributions, purchases or redemptions of stock, sales of assets or subsidiary stock, transactions with affiliates, line of business and accelerated payments of certain obligations and minimum availability requirement. | |
        The Credit Agreement contains events of default customary for similar financings. Upon the occurrence of an event of default, the outstanding obligations under the Credit Facility may be accelerated and become due and payable immediately. In addition, if a certain change of control event occurs with respect to any loan party, the Lenders have the right to require the Company to repay any outstanding loans under the Credit Facility. | |
        The Company had outstanding letters of credit of $1.1 million under the Credit Facility and no borrowings as of December 28, 2013. | |
        During fiscal 2013, the Company recorded $1.1 million of deferred financing costs in connection with the Credit Agreement, which are included in other assets at December 28, 2013 and is being amortized on a straight line basis through July 2018. | |
IMPAIRMENT_CHARGES
IMPAIRMENT CHARGES | 12 Months Ended |
Dec. 28, 2013 | |
IMPAIRMENT CHARGES | ' |
IMPAIRMENT CHARGES | ' |
NOTE 8. IMPAIRMENT CHARGES | |
        In accordance with "Impairment or Disposal of Long-Lived Assets" under Topic 360 "Property, Plant and Equipment" of the FASB ASC, impairment is the condition that exists when the carrying amount of a long-lived asset exceeds its fair value. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of long-lived assets exceeds its fair value. | |
        Due to the inability of the Company to assess the fair market value of the Company's assets in its retail stores, as these assets are not traded in an active market, the Company estimated its fair value by computing the net present value of future cash flows by discounting those future cash flows using a risk free interest rate from a 10 year treasury note. To analyze stores for impairment, the Company compared the undiscounted future cash flows against the carrying value of the long lived assets, as of December 28, 2013, for each store and as a result, identified 27 stores where the sum of undiscounted future cash flows were less than the corresponding carrying amounts. The Company then compared the net present value of future cash flows for these 27 stores against the carrying amount of the long lived assets and as a result of the excess carrying value over the computed net present value, the Company recorded an impairment charge of approximately $1.0 million for the 27 underperforming stores identified. As a result of this impairment charge, which was recorded during the fourth quarter of fiscal 2013, the Company also adjusted the cost basis of the long lived assets at the affected stores in accordance with the stated guidance mentioned above. Comparatively, the Company recorded an impairment charge of $1.1 million for 26 underperforming stores and $719,000 for 14 underperforming stores in fiscal 2012 and 2011, respectively. | |
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
OTHER LIABILITIES | ' | |||||||
OTHER LIABILITIES | ' | |||||||
NOTE 9. OTHER LIABILITIES | ||||||||
        The Company's other liabilities are comprised of the following: | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Deferred rent | $ | 7,525,000 | $ | 8,372,000 | ||||
Deferred income—co-branded credit card program | 1,218,000 | 405,000 | ||||||
Severance | 75,000 | — | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 8,818,000 | $ | 8,777,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
        In fiscal 2013, the Company recognized a net gain of $86,000 from the reversal of deferred rent partially offset by lease termination costs, which were negotiated and paid in December 2013 for stores closed in fiscal 2014. In fiscal 2012, the Company recognized a net gain of $268,000 from the reversal of deferred rent partially offset by lease termination costs, which were substantially negotiated and paid in December 2012 for stores closed in fiscal 2013. These net gains are included in store operating expenses. | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||
NOTE 10. COMMITMENTS AND CONTINGENCIES | ||||||||||||||
Leases | ||||||||||||||
        At December 28, 2013, the Company was obligated under operating leases for the corporate office, as well as another location that houses our design, production and customer service departments and various store locations expiring at various times through 2028. The terms of the leases generally provide for the payment of minimum annual rentals, contingent rentals based on a percentage of sales in excess of a stipulated amount, and a portion of promotional funds, common area maintenance and heating, ventilation and air conditioning charges. Most leases contain leasehold improvement reimbursements from landlords and/or rent holidays. In recognizing landlord incentives and minimum rent expenses, the Company amortizes the charges and incentives on a straight line basis over the lease term. Store rental expense related to these leases, included in cost of sales, consisted of the following: | ||||||||||||||
52 Weeks | 52 Weeks | 52 Weeks | ||||||||||||
Ended | Ended | Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Net minimum rentals | $ | 23,453,000 | $ | 22,918,000 | $ | 22,951,000 | ||||||||
Other occupancy costs including contingent rentals | 11,269,000 | 11,155,000 | 10,700,000 | |||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
$ | 34,722,000 | $ | 34,073,000 | $ | 33,651,000 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
        Rent expense for our New York City offices amounted to approximately $1.5 million for 2013 and approximately $1.2 million for fiscal 2012, and $1.0 million for fiscal 2011. | ||||||||||||||
        Future minimum payments under non-cancelable operating leases consisted of the following at December 28, 2013: | ||||||||||||||
Fiscal year ending: | ||||||||||||||
2014 | $ | 24,625,000 | ||||||||||||
2015 | 21,084,000 | |||||||||||||
2016 | 17,066,000 | |||||||||||||
2017 | 11,893,000 | |||||||||||||
2018 | 9,161,000 | |||||||||||||
Thereafter | 29,176,000 | |||||||||||||
​ | ​ | ​ | ​ | ​ | ||||||||||
Total future minimum lease payments | $ | 113,005,000 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ||||||||||
​ | ​ | ​ | ​ | ​ | ||||||||||
        The operating leases included in the table above do not include contingent rent based upon sales volume, which represented less than 1% of net minimum rent expense in fiscal 2013, or other occupancy costs such as promotional funds, common area maintenance and heating, ventilation and air conditioning charges, which represented approximately 47.6% of net minimum rent expense in fiscal 2013. | ||||||||||||||
Other Commitments | ||||||||||||||
        The following tables summarize our other commitments as of December 28, 2013: | ||||||||||||||
Total | 2014 | 2015 | 2016 | |||||||||||
(in thousands) | ||||||||||||||
Other Obligations | ||||||||||||||
Employment Contract | $ | 1,887 | $ | 900 | $ | 900 | $ | 87 | ||||||
Purchase Obligations | 24,107 | 24,107 | — | — | ||||||||||
Letters of Credit | 1,117 | 1,117 | — | — | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Total | $ | 27,111 | $ | 26,124 | $ | 900 | $ | 87 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
        We issue letters of credit primarily for the importation of merchandise inventories and as security deposits for our corporate office. The Company does not have any off-balance sheet financing arrangements. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 11. INCOME TAXES | |||||||||||
        The provision (benefit) for income taxes includes: | |||||||||||
52 Weeks | 52 Weeks | 52 Weeks | |||||||||
Ended | Ended | Ended | |||||||||
December 28, | December 29, | December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | — | $ | (8,000 | ) | $ | 44,000 | ||||
State | 59,000 | 87,000 | (294,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
59,000 | 79,000 | (250,000 | ) | ||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Deferred: | |||||||||||
Federal | 7,476,000 | (843,000 | ) | 454,000 | |||||||
State | 2,733,000 | (521,000 | ) | (20,000 | ) | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
10,209,000 | (1,364,000 | ) | 434,000 | ||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Provision (benefit) for income taxes | $ | 10,268,000 | $ | (1,285,000 | ) | $ | 184,000 | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
        The Company's effective tax rate, as a percent of income before income taxes, differs from the statutory federal tax rates as follows: | |||||||||||
52 Weeks | 52 Weeks | 52 Weeks | |||||||||
Ended | Ended | Ended | |||||||||
December 28, | December 29, | December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Federal statutory tax rate | 34 | % | 34 | % | 34 | % | |||||
State and local income taxes, net of federal tax benefit | 4.3 | % | 4.6 | % | 8 | % | |||||
Valuation allowance | (80.3 | )% | (28.3 | )% | (24.8 | )% | |||||
Change in unrecognized tax benefits | 0 | % | 0 | % | (12.0 | )% | |||||
Other net, primarily permanent differences | (0.5 | )% | (0.7 | )% | 2.9 | % | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Provision for income taxes | (42.5 | )% | 9.6 | % | 8.1 | % | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
        The major components of the Company's net deferred tax assets (liabilities) at December 28, 2013 and December 29, 2012 are as follows: | |||||||||||
Current | December 28, | December 29, | |||||||||
2013 | 2012 | ||||||||||
Group insurance | $ | 217,000 | $ | 227,000 | |||||||
Sales return reserve | 257,000 | 189,000 | |||||||||
Inventory | 614,000 | 639,000 | |||||||||
Prepaid expenses | (406,000 | ) | (514,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
682,000 | 541,000 | ||||||||||
Valuation allowance | (682,000 | ) | (189,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Total Current | $ | — | $ | 352,000 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Non-Current | December 28, | December 29, | |||||||||
2013 | 2012 | ||||||||||
Federal and State tax net operating loss carry-forwards | $ | 22,311,000 | $ | 13,556,000 | |||||||
Deferred rent | 1,438,000 | 1,380,000 | |||||||||
Deferred construction allowances | (7,884,000 | ) | (7,273,000 | ) | |||||||
Other (principally depreciation expense) | 11,816,000 | 10,968,000 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
27,681,000 | 18,631,000 | ||||||||||
Valuation allowance | (27,681,000 | ) | (8,774,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Total Non-current | $ | — | $ | 9,857,000 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
        During fiscal 2013 and 2012, the Company generated federal net operating losses of approximately $22.7 million and $17.9 million, respectively. During fiscal 2011, the Company generated federal taxable income of $2.2 million. At December 28, 2013, the Company had federal net operating loss ("NOL") carry-forwards of approximately $55.7 million, expiring from 2030 through 2033. | |||||||||||
        In assessing the realization of our deferred tax assets, we consider all available evidence to determine whether it is more likely than not that some portion or all of the net deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income, during the periods in which those temporary differences become realizable. We consider the scheduled reversal of deferred tax assets (including the impact of available carry-back and carry-forward periods) and projected taxable income in assessing the realization of federal deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. The Company's current or previous losses are given more weight than its projected future performance. Consequently, based on our evaluation of all available evidence, in particular our recent operating losses, the Company increased the federal valuation allowance by $15.7 million and $3.7 million during fiscal 2013 and 2012, respectively. During fiscal 2011, the Company reduced the federal valuation allowance by $0.5 million, primarily due to the utilization of net operating loss carry-forwards. At December 28, 2013, the federal valuation allowance was $23.9 million. | |||||||||||
        For state income tax purposes, the Company increased the state valuation allowance by $3.8 million and $138,000 during fiscal 2013 and 2012, respectively. During fiscal 2011, the Company reduced the state valuation allowance by $112,000. At December 28, 2013, the state valuation allowance was $4.5 million. The Company's state NOLs expire from 2013 through 2033. | |||||||||||
        At December 29, 2012, the current portion of deferred tax assets and liabilities are included in prepaid expenses and other current assets, while the non-current portion of deferred tax assets and liabilities are included in other assets on the Company's accompanying consolidated balance sheets. | |||||||||||
        The Company accounts for Uncertainty in Income Taxes in accordance with Topic 740 of the FASB ASC which prescribes a comprehensive model of how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The provision also states that a tax benefit from an uncertain tax position may be recognized if it is "more likely than not" that the position is sustainable, based upon its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that has greater than a 50% likelihood of being realized upon the ultimate settlement with a taxing authority having full knowledge of all relevant information. As of each of December 28, 2013 and December 29, 2012, the Company had no reserve recorded for potential tax contingencies. | |||||||||||
        Although the Company believes that it has adequately provided for all tax positions, amounts asserted by tax authorities could be greater or less than the Company's accrued position. Accordingly, the Company's provisions on federal, state and local tax-related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved. As of December 28, 2013, the Company does not believe that its estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months. | |||||||||||
        The Company and certain of its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state and local jurisdictions. | |||||||||||
        The Company, with few exceptions, is subject to federal, state and local income tax examinations by taxing authorities for years after 2009. | |||||||||||
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||
NOTE 12. STOCK BASED COMPENSATION | |||||||||||||
        Stock-based compensation expense for all stock-based award programs, including grants of stock options, is recorded in accordance with "Compensation—Stock Compensation", Topic 718 of the FASB ASC. Stock-based compensation expense, which is calculated net of estimated forfeitures, is computed using the grant date fair-value method on a straight-line basis over the requisite service period for all stock awards that vest during the period. The grant date fair value for stock options is calculated using the Black-Scholes option valuation model. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. All employee stock options were granted at or above the grant date market price. Stock-based compensation expense is reported under general and administrative expenses on the accompanying consolidated statements of operations. | |||||||||||||
        The Company's 2013 Stock Incentive Plan (the "2013 Plan") provides for the granting of various forms of awards, which has a maximum of 1,065,693 shares of common stock available. The shares available for issuance under the 2013 Plan are comprised of the following: (i) unissued shares of Common Stock previously available for issuance under the Company's 2008 Stock Option and Performance Incentive Plan, which were never granted or issued and are being carried forward into the Company's 2013 Stock Incentive Plan, and (ii) additional shares of Common Stock not previously available for issuance under incentive compensation plans. As of December 28, 2013, there were a total of 950,693 shares available for future grants under the 2013 Stock Incentive Plan. All of the Company's prior stock option plans have expired as to the ability to grant new options. | |||||||||||||
        The 2013 Plan replaced the Company's 2008 Stock Option and Performance Incentive Plan (the "2008" Plan"). The Company ceased making grants under the 2008 Plan upon Board approval of the 2013 Stock Incentive Plan. | |||||||||||||
        Awards granted under the plan have a ten-year term and may be incentive stock options, non-qualified stock options or restricted shares. The stock options are granted at an exercise price equal to the fair market value on the date of grant and generally vest over a three or four year period. The granted restricted stock awards generally become exercisable at the maximum rate of approximately 33% per annum, to the extent certain Company performance goals, as approved by the Compensation and Plan Administration Committee are achieved. The price for stock options is payable in cash at the time of the exercise or, at the discretion of the Administrators, through the delivery of shares of Common Stock or the Company's withholding of shares otherwise deliverable to the employee, or a combination thereof. We recognize compensation expense ratably over the vesting period, net of estimated forfeitures. Proceeds from the exercise of stock options during fiscal 2013 were approximately $93,000 and the intrinsic value of the stock options exercised was approximately $21,000. There were no stock options exercised during the 52-week period ended December 29, 2012. Restricted stock of 12,553 shares vested during fiscal 2013. | |||||||||||||
        On February 5, 2013, the Company granted Jay Margolis (its Chief Executive Officer and Chairman of the Board) time-based stock options to purchase 1,000,000 shares of the Company's common stock at an exercise price of $3.34 which had a weighted average grant date fair value of $1.15. These options vest in equal installments on the first, second and third anniversary of the grant date. The grant was awarded as non-qualified stock options that qualify as an inducement grant pursuant to NASDAQ Listing Rules and was not part of the existing plans. | |||||||||||||
        In accordance with Topic 718 of the FASB ASC, the fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model using the assumptions below for grants during fiscal 2013: | |||||||||||||
2013 Grants | |||||||||||||
Expected dividend rate | $ | 0 | |||||||||||
Expected volatility | 50.72 | % | |||||||||||
Risk free interest rate | 0.41 | % | |||||||||||
Expected lives (years) | 3 | ||||||||||||
        No options were granted in fiscal 2012 and 2011. | |||||||||||||
        The following table summarizes all stock option transactions for the fiscal year ended December 28, 2013: | |||||||||||||
Weighted | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Average | Intrinsic | ||||||||||
Shares | Exercise | Remaining | Value(1) | ||||||||||
Price | Contractual | ||||||||||||
Life | |||||||||||||
Shares under options as of December 30, 2012 | 665,675 | $ | 12.61 | ||||||||||
Options granted in 2013 | 1,000,000 | $ | 3.34 | ||||||||||
Options exercised in 2013 | (20,000 | ) | $ | 4.79 | |||||||||
Options canceled in 2013 | (620,675 | ) | $ | 12.79 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Shares under options as of December 28, 2013 | 1,025,000 | $ | 3.61 | 9.0 years | $ | 2,070,000 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Exercisable as of December 28, 2013 | 25,000 | $ | 14.34 | 3.6 years | $ | — | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
-1 | |||||||||||||
The aggregate intrinsic value in the table above is based on the Company's closing stock price as of the last business day of the period ended December 28, 20 13, which was $5.41. | |||||||||||||
        The following table summarizes the Company's non-vested stock options for the year ended December 28, 2013: | |||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested options: | |||||||||||||
At December 30, 2012 | 20,000 | $ | 1.75 | ||||||||||
Options granted | 1,000,000 | 1.15 | |||||||||||
Options vested | (5,000 | ) | 1.75 | ||||||||||
Options cancelled | (15,000 | ) | 1.75 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
At December 28, 2013 | 1,000,000 | $ | 1.15 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
        The following table summarizes all restricted stock transactions for the year ended December 28, 2013: | |||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value | ||||||||||||
Non-vested as of December 30, 2012 | 504,334 | $ | 5.47 | ||||||||||
Granted in 2013 | 370,000 | 4.69 | |||||||||||
Vested in 2013 | (12,554 | ) | 5.05 | ||||||||||
Cancelled in 2013 | (436,613 | ) | 5.15 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
Non-vested as of December 28, 2013 | 425,167 | $ | 5.13 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
        During fiscal 2013, the Company granted 370,000 shares of restricted stock awards to employees who hold various positions within the Company. A portion of these restricted stock awards will contingently vest over a three-year period, based on the Company meeting performance goals, and a portion will vest over the requisite service period. The total grant-date fair value of restricted stock during fiscal 2013, 2012, and 2011 was $4.69, $6.70, and $5.38, respectively. During fiscal 2013, the Company had a non-cash transaction from the issuance of 40,000 shares of the Company's common stock to its board members. As a result of this issuance, approximately $95,000 was recorded under share-based compensation based on the closing price on the date of grant. Topic 718 "—Compensation—Stock Compensation", of the FASB ASC, requires that cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for options exercised ("excess tax benefits") be classified as financing cash flows. No excess tax benefits were recorded during fiscal 2013, 2012 and 2011. | |||||||||||||
        During fiscal 2013, 2012 and 2011, stock based compensation related to all stock based award programs was $782,000, $322,000 and $381,000, respectively. | |||||||||||||
        As of December 28, 2013 there was approximately $1.4 million of future compensation cost related to nonvested share-based compensation awards granted under the 2013 and 2008 Plans. Approximately $739,000 of the future compensation costs relate to the Company meeting certain performance goals and $622,000 is based on reaching the requisite service period. These costs are expected to be recognized over a weighted average period of 2.3 years. | |||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | ' | ||||||||||
NOTE 13. EARNINGS PER SHARE | |||||||||||
        The following table sets forth the computations of basic and diluted earnings per share: | |||||||||||
52 Weeks | 52 Weeks | 52 Weeks | |||||||||
Ended | Ended | Ended | |||||||||
December 28, | December 29, | December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Net income (loss) | $ | (34,434,000 | ) | $ | (12,078,000 | ) | $ | 2,081,000 | |||
Net income (loss) per share—basic | $ | (1.87 | ) | $ | (0.94 | ) | $ | 0.16 | |||
Net income(loss) per share—diluted | $ | (1.87 | ) | $ | (0.94 | ) | $ | 0.16 | |||
Weighted average common shares outstanding | 18,365,000 | 12,887,000 | 12,838,000 | ||||||||
Dilutive effect of stock options and restrictive stock awards | — | — | 46,000 | ||||||||
Weighted average common and potentially dilutive common shares | 18,365,000 | 12,887,000 | 12,884,000 | ||||||||
        Options and unvested restricted common shares of 1,450,167, 1,170,009, and 1,062,330 were excluded from the computation of diluted earnings per share for fiscal 2013 and 2012, respectively, because of the net loss incurred by the Company. Diluted weighted average shares for fiscal 2011 include 4,174 shares due to the potential exercise of stock options that were outstanding and exercisable during the year. Options to purchase 736,675 common shares were excluded from the computation of diluted earnings per share for fiscal 2011 due to the anti-dilutive effect caused by the exercise price exceeding the average market price. Unvested restricted common shares of 456,663 were excluded from the computation of diluted earnings per share for fiscal 2011 due to contingent restricted shares not meeting their performance goals. | |||||||||||
QUARTERLY_RESULTS_OF_OPERATION
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ' | |||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ' | |||||||||||||
NOTE 14. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(In thousands, except per share data) | ||||||||||||||
52 weeks ended December 28, 2013 | ||||||||||||||
Net sales | $ | 53,510 | $ | 60,122 | $ | 47,221 | $ | 55,847 | ||||||
Gross profit | 16,396 | 20,875 | 15,812 | 20,316 | ||||||||||
Loss before income tax provision | (8,278 | )(3) | (3,138 | )(3) | (7,989 | )(3) | (4,761 | )(1)(3) | ||||||
Income tax provision | 10,227 | -2 | 20 | 8 | 13 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Net loss | $ | (18,505 | ) | $ | (3,158 | ) | $ | (7,997 | ) | $ | (4,774 | ) | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Basic and diluted loss per share: | ||||||||||||||
Basic loss per share: | $ | (1.43 | ) | $ | (0.17 | ) | $ | (0.38 | ) | $ | (0.23 | ) | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Diluted loss per share: | $ | (1.43 | ) | $ | (0.17 | ) | $ | (0.38 | ) | $ | (0.23 | ) | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
52 weeks ended December 29, 2012 | ||||||||||||||
Net sales | $ | 55,995 | $ | 61,633 | $ | 45,789 | $ | 60,793 | ||||||
Gross profit | 22,197 | 26,383 | 14,661 | 20,670 | ||||||||||
Income (loss) before income tax provision (benefit) | (2,005 | ) | 1,701 | -3 | (8,089 | )(3) | (4,970 | )(1)(3) | ||||||
Income tax provision (benefit) | (797 | ) | 670 | (1,713 | )(2) | 555 | -2 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Net income (loss) | $ | (1,208 | ) | $ | 1,031 | $ | (6,376 | ) | $ | (5,525 | ) | |||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Basic and diluted earnings (loss) per share: | ||||||||||||||
Basic earnings (loss) per share: | $ | (0.09 | ) | $ | 0.08 | $ | (0.49 | ) | $ | (0.43 | ) | |||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Diluted earnings (loss) per share: | $ | (0.09 | ) | $ | 0.08 | $ | (0.49 | ) | $ | (0.43 | ) | |||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
-1 | ||||||||||||||
Includes impairment charges of approximately $1.0Â million for 27 underperforming stores for fiscal 2013 and $1.1Â million for 26 underperforming stores for fiscal 2012, respectively. | ||||||||||||||
-2 | ||||||||||||||
During the first quarter of fiscal 2013, and during the third and fourth quarters of fiscal 2012, we recorded a $10.2Â million, $1.3Â million, and $2.5Â million, respectively, of non-cash tax charges related to valuation allowances against net deferred tax assets. | ||||||||||||||
-3 | ||||||||||||||
Includes severance accruals recorded in the first quarter of fiscal 2013 of $1.5Â million in connection with separation agreements with the Company's former Chief Executive Officer and other corporate employees. Includes severance accruals recorded in the second quarter of fiscal 2013 of $956,000 in connection with separation agreements with corporate executives. Includes severance accruals recorded in the third quarter of fiscal 2013 of $638,000 in connection with separation agreements with the Company's Chief Financial Officer and other corporate employees. Includes severance accruals recorded in the fourth quarter of fiscal 2013 of $106,000 in connection with separation agreements with corporate employees. Includes severance accruals recorded in fiscal 2012 of $152,000, $227,000 and $61,000 in connection with separation agreements with corporate employees in the second, third, and fourth quarters, respectively. | ||||||||||||||
SCHEDULE_II_Valuation_and_Qual
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
Cache, Inc. and Subsidiaries | |||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||
Additions | |||||||||||||||||
Sales Return Reserve | Balance at | Charge to | Other | Deductions | Balance at | ||||||||||||
Beg. of | Costs and | Accounts | End of | ||||||||||||||
Period | Expenses | Period | |||||||||||||||
52 Weeks Ended December 28, 2013 | $ | 485,000 | $ | 175,000 | -1 | $ | — | $ | 660,000 | ||||||||
52 Weeks Ended December 29, 2012 | $ | 451,000 | $ | 34,000 | -1 | $ | — | $ | — | $ | 485,000 | ||||||
52 Weeks Ended December 31, 2011 | $ | 547,000 | $ | — | $ | — | $ | 96,000 | -1 | $ | 451,000 | ||||||
Additions | |||||||||||||||||
Deferred Tax Valuation Allowance | Balance at | Charge to | Other | Deductions | Balance at | ||||||||||||
Beg. of | Costs and | Accounts | End of | ||||||||||||||
Period | Expenses | Period | |||||||||||||||
52 Weeks ended December 28, 2013 | $ | 8,963,000 | $ | 19,400,000 | $ | — | $ | — | $ | 28,363,000 | |||||||
52 Weeks ended December 29, 2012 | $ | 5,172,000 | $ | 3,791,000 | $ | — | $ | — | $ | 8,963,000 | |||||||
52 Weeks ended December 31, 2011 | $ | 5,734,000 | $ | — | $ | — | $ | 562,000 | $ | 5,172,000 | |||||||
-1 | |||||||||||||||||
Represents net change of reserves recorded and utilized during the year. | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Consolidation | ' |
Basis of Consolidation | |
        The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated. | |
Use of Estimates in the Preparation of Financial Statements | ' |
Use of Estimates in the Preparation of Financial Statements | |
        The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
        The most significant estimates made by management include those made in the areas of inventory; impairment of long lived assets; income taxes; valuation allowance on deferred tax assets; self insurance reserves; stock-based compensation, gift card breakage, sales returns and allowances and income tax uncertainties. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. | |
Fiscal Reporting Period | ' |
Fiscal Reporting Period | |
        The Company reports its annual results of operations based on fiscal periods comprised of 52 or 53 weeks, which is in accordance with industry practice. Results for each of fiscal 2013, 2012, and 2011 included 52 weeks. | |
Reclassifications | ' |
Reclassifications | |
        Reclassifications related to Employee Separation Charges have been made to fiscal 2012 and 2011 financial statements to conform to fiscal 2013 presentation. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
        The carrying amounts of certificates of deposit, accounts receivable, accounts payable and accrued liabilities approximate their estimated fair values due to their short-term nature. | |
Cash and Equivalents | ' |
Cash and Equivalents | |
        The Company considers all highly liquid investments that mature within three months or less when purchased to be cash equivalents. | |
Marketable Securities | ' |
Marketable Securities | |
        Marketable securities, at December 29, 2012, primarily consisted of short-term certificates of deposit. The Company classifies its short-term investments as held-to-maturity. Held-to-maturity securities are those securities in which the Company has the ability and intent to hold the securities until maturity. Because the Company's held-to-maturity securities mature within one year of the purchase date, the securities are classified as short-term marketable securities. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts and such carrying values approximate fair value. A decline in the market value of any held-to-maturity security below cost, that is deemed to be other than temporary, results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. No impairment has occurred for the fiscal periods presented herein. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity investments, as an adjustment to yield using the effective interest method. Interest income is recognized when earned. The fair value of our marketable securities totaled approximately $3.0 million as of December 29, 2012. The Company had no marketable securities as of December 28, 2013. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
        The allowance for doubtful accounts, which is regularly reviewed, is an estimate of the amount of probable credit losses in the existing accounts receivable. The allowance is determined based on historical write-off experience and the current retailer environment. Balances over 90 days past due and over a specified amount are reviewed individually for collectability; other balances are considered on an aggregate basis considering the aging of balances. Account balances are written off against the allowance when it is probable the receivable will not be recovered. There is no off-balance sheet credit exposure related to the Company's customers. At December 28, 2013 and December 29, 2012, reserves for doubtful accounts were immaterial. | |
Inventories | ' |
Inventories | |
        Our retail finished goods inventories are valued at the lower of cost or market using the retail inventory method. Under the retail inventory method ("RIM"), the valuation of inventories at cost and the resulting gross margins are calculated by applying a calculated cost to retail ratio to the retail value of inventories. RIM is an averaging method that is used in the retail industry due to its practicality. Additionally, it is recognized that the use of RIM will result in valuing inventories at the lower of cost or market if markdowns are currently taken as a reduction of the retail value of inventories. Inherent in the RIM calculation are certain significant management judgments including, among others, merchandise markon, markups, and markdowns, which significantly impact the ending inventory valuation at cost as well as the resulting gross margins. We take markdowns due to changes in fashion and style, based on the following factors: (i) supply on hand, (ii) historical experience and (iii) our expectations as to future sales. We do not anticipate any significant change in our markdown strategy that would cause a significant change in our financial results. We believe that our RIM provides an inventory valuation which results in a carrying value at the lower of cost or market. Inventories other than finished goods at retail stores, called production inventory, primarily consists of piece goods, trim and work-in-process. The Company values production inventory at the lower of cost or market value using first-in-first-out valuation method. The Company reviews the inventory for factors such as age, obsolescence, potential use, or other factors that may indicate a decline in its value. The Company records a reserve against the cost of the production inventory to account for any decline in its value. | |
Equipment and Leasehold Improvements | ' |
Equipment and Leasehold Improvements | |
        Equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, which generally range from three to 10 years. For income tax purposes, accelerated methods are generally used. Leasehold improvements are amortized over the shorter of their useful life or lease term. | |
        The Company evaluates finite-lived assets in accordance with "Impairment or Disposal of Long-Lived Assets" under Topic 360 "Property, Plant and Equipment" of the Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC"). Finite-lived assets are evaluated for recoverability whenever events or changes in circumstances indicate that an asset may have been impaired. In evaluating an asset for recoverability, the Company estimates the future cash flows expected to result from the use and eventual disposition of the asset. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss, equal to the excess of the carrying amount over the fair market value of the asset is recognized. Various factors including future sales growth and profit margins are included in this analysis. To the extent these future projections or strategies change, the conclusion regarding impairment may differ from the current estimates (See Note 8). | |
Intangible Assets | ' |
Intangible Assets | |
        Intangible assets consist of various trade names associated with the Cache name. The Company evaluates its intangible assets in accordance with "Intangibles—Goodwill and Other", Topic 350 of the FASB ASC. | |
Self Insurance | ' |
Self Insurance | |
        We are self-insured for losses and liabilities related primarily to employee health and welfare claims, up to certain thresholds. Losses are accrued based upon our estimates of the aggregate liability for claims incurred, using certain actuarial assumptions followed in the insurance industry and based on Company experience. Adjustments to earnings resulting from changes in historical loss trends were not significant for fiscal 2013 and 2012. The Company's earnings were impacted by an increase in employee health and welfare claims of $499,000 for fiscal 2011. We maintain stop loss insurance coverage, which covers us for benefits paid in excess of limits as defined in the plan. Therefore we do not anticipate any significant change in loss trends, settlements or other costs that would cause a significant change in earnings. | |
Gift Cards, Gift Certificates and Credits | ' |
Gift Cards, Gift Certificates and Credits | |
        The Company sells gift cards and gift certificates ("Gift Cards") and issues credits to its customers when merchandise is returned ("Merchandise Credits"), which do not expire. The Company recognizes sales from Gift Cards when they are redeemed by the customer and income when the likelihood of the Gift Card and Merchandise Credit being redeemed by the customer is remote ("Gift Card breakage"), since the Company has determined that it does not have a legal obligation to remit the unredeemed value to the relevant jurisdiction as abandoned property. The Company determines Gift Card breakage income based upon historical redemption patterns of its Merchandise Credits and Gift Cards. The Company has determined based on these historical redemption rates that approximately 5% of its Merchandise Credits issued and approximately 3% of its Gift Cards issued will remain unredeemed. The Company is recognizing the estimated unredeemed Merchandise Credits and Gift Cards over a fourteen quarter period with 64% recognized in the first quarter to 0.03% in the fourteenth quarter subsequent to the issue date. The Company has determined that redemption would be remote based on the fact that, by the fourteenth quarter since issue date, the redemption rate approximated 0%, indicating that the probability of such merchandise credits and gift cards being redeemed is remote. As such, we have recorded breakage income based upon the above criteria. Breakage income represents the balance of Gift Cards and Merchandise Credits for which the Company believes the likelihood of redemption by the customer is remote. | |
        The Company recorded breakage income of $242,000, $275,000 and $642,000 during fiscal years ended 2013, 2012 and 2011, respectively. | |
Revenue Recognition | ' |
Revenue Recognition | |
        Sales are recognized at the "point of sale," which occurs when merchandise is sold in an "over-the-counter" transaction or upon receipt by a customer. Sales of merchandise via our website and the related amounts billed to customers for shipping and handling fees which are included in net sales are recognized at the expected time of delivery to the customer. Our customers have the right to return merchandise. Sales are reported net of actual and estimated returns. We maintain a reserve for potential product returns and record, as a reduction to sales, a provision for estimated product returns, which is determined based on historical experience. The Company recorded a net increase in sales return reserve of approximately $175,000 and $34,000 for fiscal 2013 and 2012, respectively. The Company recorded a net decrease in sales return reserve of approximately $96,000 for fiscal 2011. Costs incurred for shipping and handling are included in cost of sales. The Company records revenues net of applicable sales tax. | |
        The Company's co-branded customer credit card program entitles the Company to receive from the issuing bank a non-refundable credit card activation fee for each new account that is opened and activated. These fees are initially deferred and recognized in consolidated net sales as revenue over the life of the contract, which was amended on March 1, 2013 for a period of seven years. During fiscal 2013, 2012 and 2011, the Company received $221,000, $363,000 and $745,000, respectively, in connection with activated credit cards. The amount of fee income recorded in connection with activated credit cards in fiscal 2013, 2012 and 2011 was $388,000, $1.2 million and $904,000, respectively. | |
        The Company also receives from the issuing bank and Visa U.S.A Inc. a sales royalty, which is based on a percentage of net purchases made by cardholders at Cache or other businesses. Cache has determined that since it has not incurred any significant or recurring costs in relation to the co-branded credit card program, the sales royalties earned in connection to the agreement will be recorded under net sales. The fees that are incurred by the Company are cardholder incentives, which are funded from the fees paid by the issuing bank and Visa U.S.A Inc. The amount of sales royalty income recorded in fiscal 2013, 2012 and 2011 was $455,000, $452,000 and $425,000, respectively. | |
        The Company also offers its credit card holders a program, whereby points can be earned on net purchases made with the co-branded credit card. Five reward points are awarded for each dollar spent at Cache and one reward point is awarded for each dollar spent at non-Cache businesses. Cardholders whose credit card account are not delinquent, in default or closed will be automatically eligible to receive a $25 Cache gift card upon accrual of 2,500 reward points. Effective March 1, 2013, the issuing bank pays the Company 70% of the Company gift cards issued to the bank. All other costs associated with the gift card reward program are the responsibility of the bank. | |
        Seasonality.    We experience seasonal and quarterly fluctuations in our net sales and operating income. Our quarterly results of operations may fluctuate significantly as a result of a variety of factors, including the timing of new store openings, fashion trends and shifts in timing of certain holidays. Our business is subject to seasonal influences with highest sales during our second and fourth fiscal quarters and lowest sales during our first and third fiscal quarters. | |
Operating Leases | ' |
Operating Leases | |
        The Company leases retail stores and office space under operating leases. Most leases contain construction allowance reimbursements by landlords, rent holidays, rent escalation clauses and/or contingent rent provisions. The Company recognizes the related rental expense on a straight-line basis over the lease term and records the difference between the amounts charged to expense and the rent paid as a deferred rent liability. | |
        To account for construction allowance reimbursements from landlords and rent holidays, the Company records a deferred rent liability included in other long-term liabilities on the consolidated balance sheets and amortizes the deferred rent over the lease term, as a reduction to rent expense on the consolidated statements of operations. For leases containing rent escalation clauses, the Company records minimum rent expense on a straight-line basis over the lease term on the consolidated statement of operations. The lease term used for lease evaluation includes option periods only in instances in which the exercise of the option period can be reasonably assured and failure to exercise such options would result in an economic penalty to the Company. | |
Advertising costs | ' |
Advertising costs | |
        Costs associated with advertising are charged to store operating expense, when the advertising first takes place. The Company incurred $5.9 million, $8.6 million and $6.6 million for advertising costs in fiscal 2013, 2012 and 2011, respectively. | |
Pre-Opening Store Expenses | ' |
Pre-Opening Store Expenses | |
        Expenses associated with the opening of new stores are expensed as incurred. | |
Cache 401(K) Savings Plan | ' |
Cache 401(K) Savings Plan | |
        Employees are eligible to participate in the Company's 401(k) plan if they have been employed by the Company for one year, have reached age 21 and work at least 1,000 hours annually. Generally, employees can defer up to 25% of their gross wages up to the maximum limit allowable under the Internal Revenue Code. The Company can make a discretionary matching contribution for the employee. Employer contributions to the plan for fiscal 2013, 2012 and 2011 were $89,000, $118,000 and $104,000, respectively. | |
Income Taxes | ' |
Income Taxes | |
        The Company accounts for income taxes in accordance with "Income Taxes" Topic 740 of the FASB ASC. This statement requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using applicable tax rates for the years in which the differences are expected to reverse. When tax contingencies become probable, a liability for the contingent amount is estimated based upon the Company's best estimation of the potential exposures associated with the timing and amount of deductions, as well as various tax filing positions (See Note 11). | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
        Stock-based compensation expense for all stock-based awards program, including grants of stock options, is recorded in accordance with "Compensation—Stock Compensation", Topic 718 of the FASB ASC. The grant date fair value for stock options is calculated using the Black- Scholes option valuation model. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. All employee stock options were granted at or above the grant date market price. Judgment is required in estimating the amount of share- based awards expected to be forfeited prior to vesting. In accordance with the stated guidance, if actual forfeitures differ significantly from these estimates, share-based compensation expense could be materially impacted (See Note 12). The Company recognized $782,000, $322,000 and $381,000 in stock-based compensation expense during fiscal 2013, 2012 and 2011, respectively. | |
Earnings (Loss) Per Share | ' |
Earnings (Loss) Per Share | |
        Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted earnings per share also includes the dilutive effect of potential common shares (dilutive stock options and unvested restricted common shares) outstanding during the period. | |
Comprehensive Income | ' |
Comprehensive Income | |
        The Company reports comprehensive income in accordance with "Comprehensive Income", Topic 220 of the FASB ASC. This guidance provides standards for the reporting and display of comprehensive income. Components of comprehensive income could include net income, foreign currency translation adjustments and gains or losses associated with investments available for sale. There was no difference between net income and comprehensive income for any of the periods presented. | |
Segment Reporting | ' |
Segment Reporting | |
        Topic 280 "Segment Reporting", of the FASB ASC establishes standards for reporting information about a company's operating segments. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company operates in a single operating segment—the operation of specialty retail stores. Revenues from external customers are derived from merchandise sales and we do not rely on any major customers as a source of revenue. | |
Concentration | ' |
Concentration | |
        The Company has five major suppliers, which accounted for approximately 36% of our purchases during fiscal 2013, and our largest supplier accounted for 12% of our purchases during fiscal 2013. The loss of any of these suppliers could adversely affect the Company's operations. | |
Recent Accounting Developments | ' |
Recent Accounting Developments | |
        In July 2013, the FASB issued Accounting Standards Update ("ASU") 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to clarify the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2013. The Company early adopted this ASU and it did not have a material impact on its consolidated financial statements. | |
        In February 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. For public entities, the amendments in ASU 2013-02 are effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Company's consolidated financial statements. | |
        In July 2012, the FASB issued ASU 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. Under these amendments, an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on the Company's consolidated financial statements. | |
Supplemental Statements of Cash Flow Information | ' |
Supplemental Statements of Cash Flow Information | |
        During fiscal 2013, 2012 and 2011, the Company paid $115,000, $209,000 and $337,000 in income taxes, respectively. During 2011, the Company accrued $70,000 and paid $94,000 for interest expense on a note payable which was settled during fiscal 2011. In addition, during fiscal 2013, 2012 and 2011, the Company accrued equipment and leasehold improvements of $262,000, $764,000 and $199,000, respectively. | |
RECEIVABLES_Tables
RECEIVABLES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
RECEIVABLES | ' | |||||||
Schedule of accounts receivable of the entity | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Construction allowances | $ | 430,000 | $ | 137,000 | ||||
Third party credit cards | 1,674,000 | 1,622,000 | ||||||
Other | 702,000 | 441,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 2,806,000 | $ | 2,200,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 935,000 | $ | 1,014,000 | ||||
Work in process | 1,918,000 | 2,237,000 | ||||||
Finished goods | 20,820,000 | 17,995,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 23,673,000 | $ | 21,246,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
EQUIPMENT_AND_LEASEHOLD_IMPROV1
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | |||||||
Schedule of equipment and leasehold improvements | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Leasehold improvements | $ | 45,899,000 | $ | 47,734,000 | ||||
Furniture, fixtures, and equipment | 40,931,000 | 39,571,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
86,830,000 | 87,305,000 | |||||||
Less: accumulated depreciation and amortization | (68,609,000 | ) | (67,128,000 | ) | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 18,221,000 | $ | 20,177,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
Schedule of accrued liabilities | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Gift cards, merchandise credit cards and other customer deposits and credits | $ | 4,670,000 | $ | 4,118,000 | ||||
Taxes, including income taxes | 2,418,000 | 2,130,000 | ||||||
Operating expenses | 2,395,000 | 2,502,000 | ||||||
Sales return reserve | 660,000 | 485,000 | ||||||
Group insurance | 556,000 | 581,000 | ||||||
Fixed asset additions | 262,000 | 764,000 | ||||||
Deferred income—co-branded credit card program | 236,000 | 1,215,000 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 11,197,000 | $ | 11,795,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
OTHER LIABILITIES | ' | |||||||
Schedule of other liabilities | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Deferred rent | $ | 7,525,000 | $ | 8,372,000 | ||||
Deferred income—co-branded credit card program | 1,218,000 | 405,000 | ||||||
Severance | 75,000 | — | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
$ | 8,818,000 | $ | 8,777,000 | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||
Schedule of store rental expense related to operating leases | ' | |||||||||||||
52 Weeks | 52 Weeks | 52 Weeks | ||||||||||||
Ended | Ended | Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Net minimum rentals | $ | 23,453,000 | $ | 22,918,000 | $ | 22,951,000 | ||||||||
Other occupancy costs including contingent rentals | 11,269,000 | 11,155,000 | 10,700,000 | |||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
$ | 34,722,000 | $ | 34,073,000 | $ | 33,651,000 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Schedule of future minimum payments under non-cancelable operating leases | ' | |||||||||||||
Fiscal year ending: | ||||||||||||||
2014 | $ | 24,625,000 | ||||||||||||
2015 | 21,084,000 | |||||||||||||
2016 | 17,066,000 | |||||||||||||
2017 | 11,893,000 | |||||||||||||
2018 | 9,161,000 | |||||||||||||
Thereafter | 29,176,000 | |||||||||||||
​ | ​ | ​ | ​ | ​ | ||||||||||
Total future minimum lease payments | $ | 113,005,000 | ||||||||||||
​ | ​ | ​ | ​ | ​ | ||||||||||
​ | ​ | ​ | ​ | ​ | ||||||||||
Summary of other commitments | ' | |||||||||||||
Total | 2014 | 2015 | 2016 | |||||||||||
(in thousands) | ||||||||||||||
Other Obligations | ||||||||||||||
Employment Contract | $ | 1,887 | $ | 900 | $ | 900 | $ | 87 | ||||||
Purchase Obligations | 24,107 | 24,107 | — | — | ||||||||||
Letters of Credit | 1,117 | 1,117 | — | — | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Total | $ | 27,111 | $ | 26,124 | $ | 900 | $ | 87 | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of provision (benefit) for income taxes | ' | ||||||||||
52 Weeks | 52 Weeks | 52 Weeks | |||||||||
Ended | Ended | Ended | |||||||||
December 28, | December 29, | December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | — | $ | (8,000 | ) | $ | 44,000 | ||||
State | 59,000 | 87,000 | (294,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
59,000 | 79,000 | (250,000 | ) | ||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Deferred: | |||||||||||
Federal | 7,476,000 | (843,000 | ) | 454,000 | |||||||
State | 2,733,000 | (521,000 | ) | (20,000 | ) | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
10,209,000 | (1,364,000 | ) | 434,000 | ||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Provision (benefit) for income taxes | $ | 10,268,000 | $ | (1,285,000 | ) | $ | 184,000 | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Schedule of Company's effective tax rate, as a percent of income before income taxes, differs from the statutory federal tax rates | ' | ||||||||||
52 Weeks | 52 Weeks | 52 Weeks | |||||||||
Ended | Ended | Ended | |||||||||
December 28, | December 29, | December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Federal statutory tax rate | 34 | % | 34 | % | 34 | % | |||||
State and local income taxes, net of federal tax benefit | 4.3 | % | 4.6 | % | 8 | % | |||||
Valuation allowance | (80.3 | )% | (28.3 | )% | (24.8 | )% | |||||
Change in unrecognized tax benefits | 0 | % | 0 | % | (12.0 | )% | |||||
Other net, primarily permanent differences | (0.5 | )% | (0.7 | )% | 2.9 | % | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Provision for income taxes | (42.5 | )% | 9.6 | % | 8.1 | % | |||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Schedule of major components of the Company's net deferred tax assets (liabilities) | ' | ||||||||||
Current | December 28, | December 29, | |||||||||
2013 | 2012 | ||||||||||
Group insurance | $ | 217,000 | $ | 227,000 | |||||||
Sales return reserve | 257,000 | 189,000 | |||||||||
Inventory | 614,000 | 639,000 | |||||||||
Prepaid expenses | (406,000 | ) | (514,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
682,000 | 541,000 | ||||||||||
Valuation allowance | (682,000 | ) | (189,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Total Current | $ | — | $ | 352,000 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Non-Current | December 28, | December 29, | |||||||||
2013 | 2012 | ||||||||||
Federal and State tax net operating loss carry-forwards | $ | 22,311,000 | $ | 13,556,000 | |||||||
Deferred rent | 1,438,000 | 1,380,000 | |||||||||
Deferred construction allowances | (7,884,000 | ) | (7,273,000 | ) | |||||||
Other (principally depreciation expense) | 11,816,000 | 10,968,000 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
27,681,000 | 18,631,000 | ||||||||||
Valuation allowance | (27,681,000 | ) | (8,774,000 | ) | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
Total Non-current | $ | — | $ | 9,857,000 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||
Schedule of assumptions used in estimation of fair value of each option grant on the date of grant using the Black Scholes option pricing model | ' | ||||||||||||
2013 Grants | |||||||||||||
Expected dividend rate | $ | 0 | |||||||||||
Expected volatility | 50.72 | % | |||||||||||
Risk free interest rate | 0.41 | % | |||||||||||
Expected lives (years) | 3 | ||||||||||||
Summary of all stock option transactions | ' | ||||||||||||
Weighted | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Average | Intrinsic | ||||||||||
Shares | Exercise | Remaining | Value(1) | ||||||||||
Price | Contractual | ||||||||||||
Life | |||||||||||||
Shares under options as of December 30, 2012 | 665,675 | $ | 12.61 | ||||||||||
Options granted in 2013 | 1,000,000 | $ | 3.34 | ||||||||||
Options exercised in 2013 | (20,000 | ) | $ | 4.79 | |||||||||
Options canceled in 2013 | (620,675 | ) | $ | 12.79 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Shares under options as of December 28, 2013 | 1,025,000 | $ | 3.61 | 9.0 years | $ | 2,070,000 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Exercisable as of December 28, 2013 | 25,000 | $ | 14.34 | 3.6 years | $ | — | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
-1 | |||||||||||||
The aggregate intrinsic value in the table above is based on the Company's closing stock price as of the last business day of the period ended December 28, 20 13, which was $5.41. | |||||||||||||
Summary of non-vested stock options | ' | ||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested options: | |||||||||||||
At December 30, 2012 | 20,000 | $ | 1.75 | ||||||||||
Options granted | 1,000,000 | 1.15 | |||||||||||
Options vested | (5,000 | ) | 1.75 | ||||||||||
Options cancelled | (15,000 | ) | 1.75 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
At December 28, 2013 | 1,000,000 | $ | 1.15 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
Summary of all restricted stock transactions | ' | ||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value | ||||||||||||
Non-vested as of December 30, 2012 | 504,334 | $ | 5.47 | ||||||||||
Granted in 2013 | 370,000 | 4.69 | |||||||||||
Vested in 2013 | (12,554 | ) | 5.05 | ||||||||||
Cancelled in 2013 | (436,613 | ) | 5.15 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
Non-vested as of December 28, 2013 | 425,167 | $ | 5.13 | ||||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Schedule of computations of basic and diluted earnings per share | ' | ||||||||||
52 Weeks | 52 Weeks | 52 Weeks | |||||||||
Ended | Ended | Ended | |||||||||
December 28, | December 29, | December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Net income (loss) | $ | (34,434,000 | ) | $ | (12,078,000 | ) | $ | 2,081,000 | |||
Net income (loss) per share—basic | $ | (1.87 | ) | $ | (0.94 | ) | $ | 0.16 | |||
Net income(loss) per share—diluted | $ | (1.87 | ) | $ | (0.94 | ) | $ | 0.16 | |||
Weighted average common shares outstanding | 18,365,000 | 12,887,000 | 12,838,000 | ||||||||
Dilutive effect of stock options and restrictive stock awards | — | — | 46,000 | ||||||||
Weighted average common and potentially dilutive common shares | 18,365,000 | 12,887,000 | 12,884,000 |
QUARTERLY_RESULTS_OF_OPERATION1
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ' | |||||||||||||
Schedule of quarterly results of operations | ' | |||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(In thousands, except per share data) | ||||||||||||||
52 weeks ended December 28, 2013 | ||||||||||||||
Net sales | $ | 53,510 | $ | 60,122 | $ | 47,221 | $ | 55,847 | ||||||
Gross profit | 16,396 | 20,875 | 15,812 | 20,316 | ||||||||||
Loss before income tax provision | (8,278 | )(3) | (3,138 | )(3) | (7,989 | )(3) | (4,761 | )(1)(3) | ||||||
Income tax provision | 10,227 | -2 | 20 | 8 | 13 | |||||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Net loss | $ | (18,505 | ) | $ | (3,158 | ) | $ | (7,997 | ) | $ | (4,774 | ) | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Basic and diluted loss per share: | ||||||||||||||
Basic loss per share: | $ | (1.43 | ) | $ | (0.17 | ) | $ | (0.38 | ) | $ | (0.23 | ) | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Diluted loss per share: | $ | (1.43 | ) | $ | (0.17 | ) | $ | (0.38 | ) | $ | (0.23 | ) | ||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
52 weeks ended December 29, 2012 | ||||||||||||||
Net sales | $ | 55,995 | $ | 61,633 | $ | 45,789 | $ | 60,793 | ||||||
Gross profit | 22,197 | 26,383 | 14,661 | 20,670 | ||||||||||
Income (loss) before income tax provision (benefit) | (2,005 | ) | 1,701 | -3 | (8,089 | )(3) | (4,970 | )(1)(3) | ||||||
Income tax provision (benefit) | (797 | ) | 670 | (1,713 | )(2) | 555 | -2 | |||||||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Net income (loss) | $ | (1,208 | ) | $ | 1,031 | $ | (6,376 | ) | $ | (5,525 | ) | |||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Basic and diluted earnings (loss) per share: | ||||||||||||||
Basic earnings (loss) per share: | $ | (0.09 | ) | $ | 0.08 | $ | (0.49 | ) | $ | (0.43 | ) | |||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
Diluted earnings (loss) per share: | $ | (0.09 | ) | $ | 0.08 | $ | (0.49 | ) | $ | (0.43 | ) | |||
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | |
-1 | ||||||||||||||
Includes impairment charges of approximately $1.0Â million for 27 underperforming stores for fiscal 2013 and $1.1Â million for 26 underperforming stores for fiscal 2012, respectively. | ||||||||||||||
-2 | ||||||||||||||
During the first quarter of fiscal 2013, and during the third and fourth quarters of fiscal 2012, we recorded a $10.2Â million, $1.3Â million, and $2.5Â million, respectively, of non-cash tax charges related to valuation allowances against net deferred tax assets. | ||||||||||||||
-3 | ||||||||||||||
Includes severance accruals recorded in the first quarter of fiscal 2013 of $1.5Â million in connection with separation agreements with the Company's former Chief Executive Officer and other corporate employees. Includes severance accruals recorded in the second quarter of fiscal 2013 of $956,000 in connection with separation agreements with corporate executives. Includes severance accruals recorded in the third quarter of fiscal 2013 of $638,000 in connection with separation agreements with the Company's Chief Financial Officer and other corporate employees. Includes severance accruals recorded in the fourth quarter of fiscal 2013 of $106,000 in connection with separation agreements with corporate employees. Includes severance accruals recorded in fiscal 2012 of $152,000, $227,000 and $61,000 in connection with separation agreements with corporate employees in the second, third, and fourth quarters, respectively. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
item | |||
Business | ' | ' | ' |
Number of women's apparel specialty stores operated | 250 | ' | ' |
Basis of presentation | ' | ' | ' |
Length of fiscal year | '364 days | '364 days | '364 days |
Marketable Securities | ' | ' | ' |
Impairment of marketable securities | $0 | $0 | ' |
Fair value of marketable securities | ' | 3,000,000 | ' |
Marketable securities | $0 | ' | ' |
Minimum | ' | ' | ' |
Basis of presentation | ' | ' | ' |
Length of fiscal year | '364 days | ' | ' |
Maximum | ' | ' | ' |
Basis of presentation | ' | ' | ' |
Length of fiscal year | '371 days | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 28, 2013 | |
Allowance for Doubtful Accounts | ' |
Minimum period after receivable balances are past due that accounts are reviewed individually for collectability | '90 days |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 28, 2013 | |
Minimum | ' |
Equipment and Leasehold Improvements | ' |
Estimated useful lives | '3 years |
Maximum | ' |
Equipment and Leasehold Improvements | ' |
Estimated useful lives | '10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 0 Months Ended | 12 Months Ended | ||
Mar. 01, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
item | ||||
Self Insurance | ' | ' | ' | ' |
Increase in employee health and welfare claims | ' | ' | ' | $499,000 |
Gift Cards, Gift Certificates and Credits | ' | ' | ' | ' |
Percentage of Merchandise Credits issued which will remain unredeemed | ' | 5.00% | ' | ' |
Percentage of Gift Cards issued which will remain unredeemed | ' | 3.00% | ' | ' |
Period for recognition of unredeemed Merchandise Credits and Gift Cards | ' | '3 years 6 months | ' | ' |
Percentage of unredeemed Gift Cards and Merchandise Credits to be recognized in the first quarter subsequent to the issue date | ' | 64.00% | ' | ' |
Percentage of unredeemed Gift Cards and Merchandise Credits to be recognized in the fourteenth quarter subsequent to the issue date | ' | 0.03% | ' | ' |
Redemption rate of Gift Cards and Merchandise Credits in the fourteenth quarter subsequent to issue date, as a percent | ' | 0.00% | ' | ' |
Breakage income | ' | 242,000 | 275,000 | 642,000 |
Revenue Recognition | ' | ' | ' | ' |
Period of non-refundable credit card activation fees | '7 years | ' | ' | ' |
Amount received in connection with activated credit cards | ' | 221,000 | 363,000 | 745,000 |
Fee income in connection with activated credit cards | ' | 388,000 | 1,159,000 | 904,000 |
Sales royalty income | ' | 455,000 | 452,000 | 425,000 |
Number of reward points awarded for each dollar spent at Cache | ' | 5 | ' | ' |
Number of reward points awarded for each dollar spent at non-Cache businesses | ' | 1 | ' | ' |
Value of a Cache gift card which eligible cardholders will receive upon accrual of 2,500 reward points | ' | 25 | ' | ' |
Number of accrued reward points to receive gift card | ' | 2,500 | ' | ' |
Percentage of amount paid by bank on value of gift cards issued by the entity | 70.00% | ' | ' | ' |
Advertising costs | ' | ' | ' | ' |
Advertising costs | ' | 5,900,000 | 8,600,000 | 6,600,000 |
Cache 401(K) Savings Plan | ' | ' | ' | ' |
Eligibility period of employment to participate in the Company's 401(k) plan | ' | '1 year | ' | ' |
Eligibility age of employees to participate in the Company's 401(k) plan | ' | '21 years | ' | ' |
Minimum number of annual hours worked by employees to participate in the Company's 401(k) plan | ' | 1,000 | ' | ' |
Maximum percentage of gross pay that employees can defer | ' | 25.00% | ' | ' |
Employer contributions to the plan | ' | 89,000 | 118,000 | 104,000 |
Stock-Based Compensation | ' | ' | ' | ' |
Stock-based compensation | ' | 782,000 | 322,000 | 381,000 |
Sales Return Reserve | ' | ' | ' | ' |
Revenue Recognition | ' | ' | ' | ' |
Net increase decrease in sales return reserve | ' | $175,000 | $34,000 | ($96,000) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Supplemental Statements of Cash Flow Information | ' | ' | ' |
Income taxes paid | $115,000 | $209,000 | $337,000 |
Accrued interest expense on a note payable | ' | ' | 70,000 |
Interest paid on a note payable | ' | ' | 94,000 |
Accrued equipment and leasehold improvements | $262,000 | $764,000 | $199,000 |
Supplier concentration risk | ' | ' | ' |
Concentration | ' | ' | ' |
Number of major suppliers | 5 | ' | ' |
Purchases | Supplier concentration risk | Five major suppliers | ' | ' | ' |
Concentration | ' | ' | ' |
Percentage of concentration risk | 36.00% | ' | ' |
Purchases | Supplier concentration risk | Largest supplier | ' | ' | ' |
Concentration | ' | ' | ' |
Percentage of concentration risk | 12.00% | ' | ' |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Fair value measurement | ' | ' |
Fair value of marketable securities | ' | $3,000,000 |
Marketable securities | 0 | ' |
Impairment of marketable securities | 0 | 0 |
Level 1 inputs | ' | ' |
Fair value measurement | ' | ' |
Fair value of marketable securities | ' | 3,000,000 |
Marketable securities | 0 | ' |
Impairment of marketable securities | $0 | $0 |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
Receivables | ' | ' |
Receivables, net | $2,806,000 | $2,200,000 |
Income tax receivable | ' | 184,000 |
Construction allowances | ' | ' |
Receivables | ' | ' |
Receivables, net | 430,000 | 137,000 |
Third party credit cards | ' | ' |
Receivables | ' | ' |
Receivables, net | 1,674,000 | 1,622,000 |
Other | ' | ' |
Receivables | ' | ' |
Receivables, net | $702,000 | $441,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
INVENTORIES | ' | ' |
Raw materials | $935,000 | $1,014,000 |
Work-in-process | 1,918,000 | 2,237,000 |
Finished goods | 20,820,000 | 17,995,000 |
Inventories, net | $23,673,000 | $21,246,000 |
EQUIPMENT_AND_LEASEHOLD_IMPROV2
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
item | |||
Equipment and Leasehold Improvements | ' | ' | ' |
Equipment and leasehold improvements, gross | $86,830,000 | $87,305,000 | ' |
Less: accumulated depreciation and amortization | -68,609,000 | -67,128,000 | ' |
Equipment and leasehold improvements, net | 18,221,000 | 20,177,000 | ' |
Depreciation and amortization expense | 7,047,000 | 7,176,000 | 7,784,000 |
Number of stores closed in early fiscal 2014 | 7 | ' | ' |
Accelerated depreciation | 16,000 | ' | ' |
Leasehold improvements | ' | ' | ' |
Equipment and Leasehold Improvements | ' | ' | ' |
Equipment and leasehold improvements, gross | 45,899,000 | 47,734,000 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
Equipment and Leasehold Improvements | ' | ' | ' |
Equipment and leasehold improvements, gross | $40,931,000 | $39,571,000 | ' |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
ACCRUED LIABILITIES | ' | ' |
Gift cards, merchandise credit cards and other customer deposits and credits | $4,670,000 | $4,118,000 |
Taxes, including income taxes | 2,418,000 | 2,130,000 |
Operating expenses | 2,395,000 | 2,502,000 |
Sales return reserve | 660,000 | 485,000 |
Group insurance | 556,000 | 581,000 |
Fixed asset additions | 262,000 | 764,000 |
Deferred income - co-branded credit card program | 236,000 | 1,215,000 |
Accrued liabilities | $11,197,000 | $11,795,000 |
CREDIT_FACILITY_Details
CREDIT FACILITY (Details) (USD $) | Dec. 29, 2012 | Dec. 28, 2013 | Jul. 25, 2013 | 31-May-13 | Dec. 29, 2012 | Jul. 25, 2013 | Dec. 28, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 |
Letters of Credit | Letters of Credit | Letters of Credit | Letters of Credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | ||
LIBOR | LIBOR | Base rate | Base rate | U. S. federal funds rate | Adjusted LIBOR rate | ||||||||
Average daily availability equal to or greater than 50% of the borrowing base | Average daily availability less than 50% of the borrowing base | Average daily availability equal to or greater than 50% of the borrowing base | Average daily availability less than 50% of the borrowing base | ||||||||||
Bank debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity | ' | ' | $5,000,000 | $3,000,000 | ' | $25,000,000 | ' | ' | ' | ' | ' | ' | ' |
Letters of credit collateralized by security interest in certificates of deposit | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certificates of deposit collateralized for the remaining outstanding facility | 3,000,000 | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding amount | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of credit facility | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, amount outstanding | ' | 1,100,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Reference rate | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'base rate | 'base rate | 'federal funds rate | 'adjusted LIBOR rate |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.75% | 0.50% | 0.75% | 0.50% | 1.00% |
Deferred financing costs | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' |
IMPAIRMENT_CHARGES_Details
IMPAIRMENT CHARGES (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
item | item | item | |
IMPAIRMENT CHARGES | ' | ' | ' |
Term of treasury note | '10 years | ' | ' |
Number of underperforming stores | 27 | 26 | 14 |
Impairment charge | $1,000,000 | $1,100,000 | $719,000 |
OTHER_LIABILITIES_Details
OTHER LIABILITIES (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
OTHER LIABILITIES | ' | ' |
Deferred rent | $7,525,000 | $8,372,000 |
Deferred income - co-branded credit card program | 1,218,000 | 405,000 |
Severance | 75,000 | ' |
Other liabilities | 8,818,000 | 8,777,000 |
Net gain from reversal of deferred rent | $86,000 | $268,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Store rental expense related to operating leases | ' | ' | ' |
Net minimum rentals | $23,453,000 | $22,918,000 | $22,951,000 |
Other occupancy costs including contingent rentals | 11,269,000 | 11,155,000 | 10,700,000 |
Total | 34,722,000 | 34,073,000 | 33,651,000 |
Rent Expense - New York City offices | 1,500,000 | 1,200,000 | 1,000,000 |
Future minimum payments under non-cancelable operating leases | ' | ' | ' |
2014 | 24,625,000 | ' | ' |
2015 | 21,084,000 | ' | ' |
2016 | 17,066,000 | ' | ' |
2017 | 11,893,000 | ' | ' |
2018 | 9,161,000 | ' | ' |
Thereafter | 29,176,000 | ' | ' |
Total future minimum lease payments | $113,005,000 | ' | ' |
Contingent rent based upon sales volume as a maximum percentage of net minimum rent expense | 1.00% | ' | ' |
Other occupancy costs as a percentage of net minimum rent expense | 47.60% | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Total | ' |
Total | $27,111 |
2014 | 26,124 |
2015 | 900 |
2016 | 87 |
Employment Contract | ' |
Other Obligations | ' |
Total | 1,887 |
2014 | 900 |
2015 | 900 |
2016 | 87 |
Purchase Obligations | ' |
Purchase Obligations | ' |
Total | 24,107 |
2014 | 24,107 |
Letters of Credit | ' |
Letters of Credit | ' |
Total | 1,117 |
2014 | $1,117 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($8,000) | $44,000 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 59,000 | 87,000 | -294,000 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 59,000 | 79,000 | -250,000 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 7,476,000 | -843,000 | 454,000 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 2,733,000 | -521,000 | -20,000 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 10,209,000 | -1,364,000 | 434,000 |
Provision (benefit) for income taxes | 13,000 | 8,000 | 20,000 | 10,227,000 | 555,000 | -1,713,000 | 670,000 | -797,000 | 10,268,000 | -1,285,000 | 184,000 |
Reconciliation of effective tax rate from the statutory federal tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal statutory tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 34.00% | 34.00% | 34.00% |
State and local income taxes, net of federal tax benefit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 4.30% | 4.60% | 8.00% |
Valuation allowance (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -80.30% | -28.30% | -24.80% |
Change in unrecognized tax benefits (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | -12.00% |
Other net, primarily permanent differences (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.50% | -0.70% | 2.90% |
Provision for income taxes (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -42.50% | 9.60% | 8.10% |
Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Group insurance | 217,000 | ' | ' | ' | 227,000 | ' | ' | ' | 217,000 | 227,000 | ' |
Sales return reserve | 257,000 | ' | ' | ' | 189,000 | ' | ' | ' | 257,000 | 189,000 | ' |
Inventory | 614,000 | ' | ' | ' | 639,000 | ' | ' | ' | 614,000 | 639,000 | ' |
Prepaid expenses | -406,000 | ' | ' | ' | -514,000 | ' | ' | ' | -406,000 | -514,000 | ' |
Total current, gross | 682,000 | ' | ' | ' | 541,000 | ' | ' | ' | 682,000 | 541,000 | ' |
Valuation allowance | -682,000 | ' | ' | ' | -189,000 | ' | ' | ' | -682,000 | -189,000 | ' |
Total Current | ' | ' | ' | ' | 352,000 | ' | ' | ' | ' | 352,000 | ' |
Non-Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal and State tax net operating loss carry-forwards | 22,311,000 | ' | ' | ' | 13,556,000 | ' | ' | ' | 22,311,000 | 13,556,000 | ' |
Deferred rent | 1,438,000 | ' | ' | ' | 1,380,000 | ' | ' | ' | 1,438,000 | 1,380,000 | ' |
Deferred construction allowances | -7,884,000 | ' | ' | ' | -7,273,000 | ' | ' | ' | -7,884,000 | -7,273,000 | ' |
Other (principally depreciation expense) | 11,816,000 | ' | ' | ' | 10,968,000 | ' | ' | ' | 11,816,000 | 10,968,000 | ' |
Total Non-current, gross | 27,681,000 | ' | ' | ' | 18,631,000 | ' | ' | ' | 27,681,000 | 18,631,000 | ' |
Valuation allowance | -27,681,000 | ' | ' | ' | -8,774,000 | ' | ' | ' | -27,681,000 | -8,774,000 | ' |
Total Non-current | ' | ' | ' | ' | $9,857,000 | ' | ' | ' | ' | $9,857,000 | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Mar. 30, 2013 | Dec. 29, 2012 | Sep. 30, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Federal | Federal | Federal | State | State | State | ||||
Net operating loss carry-forward | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal operating income (loss) | ' | ' | ' | ($22,700,000) | ($17,900,000) | $2,200,000 | ' | ' | ' |
Net operating loss carry-forward | ' | ' | ' | 55,700,000 | ' | ' | ' | ' | ' |
Increase (decrease) in valuation allowance | 10,200,000 | 2,500,000 | 1,300,000 | 15,700,000 | 3,700,000 | -500,000 | 3,800,000 | 138,000 | -112,000 |
Valuation allowance | ' | ' | ' | $23,900,000 | ' | ' | $4,500,000 | ' | ' |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Feb. 05, 2013 | |
Time Based Vesting | Performance based vesting | Board members | Restricted stock | Restricted stock | Restricted stock | Stock options | Stock options | Stock options | Stock options | Stock options | Time-based stock options | ||||
Minimum | Maximum | Jay Margolis | |||||||||||||
STOCK BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares of common stock available for grant | 1,065,693 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of shares available for future grants | 950,693 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of awards granted under the plan | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' |
Awards exercisable rate (as a percent) | ' | ' | ' | ' | ' | ' | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the exercise of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | $93,000 | ' | ' | ' | ' | ' |
Intrinsic value of the stock options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | ' | ' | ' | ' | ' |
Assumptions used in calculating fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.72% | ' | ' | ' | ' | ' |
Risk free interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.41% | ' | ' | ' | ' | ' |
Expected lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Options outstanding, Weighted Average Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares under options at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 665,675 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 0 | 0 | ' | ' | 1,000,000 |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -20,000 | 0 | ' | ' | ' | ' |
Canceled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -620,675 | ' | ' | ' | ' | ' |
Shares under options at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,025,000 | 665,675 | ' | ' | ' | ' |
Exercisable (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' |
Options outstanding, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares under options at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.61 | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.34 | ' | ' | ' | ' | $3.34 |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.79 | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.79 | ' | ' | ' | ' | ' |
Shares under options at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.61 | $12.61 | ' | ' | ' | ' |
Exercisable (in dollars per shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.34 | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares under options at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 7 months 6 days | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares under options at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,070,000 | ' | ' | ' | ' | ' |
Closing stock price (in dollars per share) | $5.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested options at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' |
Options granted (in share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 0 | 0 | ' | ' | 1,000,000 |
Options vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,000 | ' | ' | ' | ' | ' |
Options cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,000 | ' | ' | ' | ' | ' |
Non-vested options at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 20,000 | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested options at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.75 | ' | ' | ' | ' | ' |
Options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.15 | ' | ' | ' | ' | ' |
Options vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.75 | ' | ' | ' | ' | ' |
Options cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.75 | ' | ' | ' | ' | ' |
Non-vested options at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.15 | $1.75 | ' | ' | ' | ' |
Weighted Average Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | 504,334 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | 370,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | -12,554 | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | ' | ' | -436,613 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | 425,167 | 504,334 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | $5.47 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | $4.69 | $6.70 | $5.38 | ' | ' | ' | ' | ' | $1.15 |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | $5.05 | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | $5.15 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | $5.13 | $5.47 | ' | ' | ' | ' | ' | ' | ' |
Vesting period of stock awards where vesting is contingent upon meeting performance goals | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' |
Stock-based compensation | 782,000 | 322,000 | 381,000 | ' | ' | 95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $1,400,000 | ' | ' | $622,000 | $739,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for recognition of future compensation costs | ' | ' | ' | ' | ' | ' | '2 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
EARNINGS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($4,774,000) | ($7,997,000) | ($3,158,000) | ($18,505,000) | ($5,525,000) | ($6,376,000) | $1,031,000 | ($1,208,000) | ($34,434,000) | ($12,078,000) | $2,081,000 |
Net income (loss) per share - Basic (in dollars per share) | ($0.23) | ($0.38) | ($0.17) | ($1.43) | ($0.43) | ($0.49) | $0.08 | ($0.09) | ($1.87) | ($0.94) | $0.16 |
Net income (loss) per share - Diluted (in dollars per share) | ($0.23) | ($0.38) | ($0.17) | ($1.43) | ($0.43) | ($0.49) | $0.08 | ($0.09) | ($1.87) | ($0.94) | $0.16 |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 18,365,000 | 12,887,000 | 12,838,000 |
Dilutive effect of stock options and restrictive stock awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 |
Weighted average common and potentially dilutive common shares | ' | ' | ' | ' | ' | ' | ' | ' | 18,365,000 | 12,887,000 | 12,884,000 |
Potential exercise of stock options outstanding and exercisable included in diluted weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,174 |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 736,675 |
Stock options and unvested restricted common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,450,167 | 1,170,009 | 1,062,330 |
Unvested restricted common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 456,663 |
QUARTERLY_RESULTS_OF_OPERATION2
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
item | item | item | |||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $55,847,000 | $47,221,000 | $60,122,000 | $53,510,000 | $60,793,000 | $45,789,000 | $61,633,000 | $55,995,000 | $216,700,000 | $224,210,000 | $223,880,000 |
Gross profit | 20,316,000 | 15,812,000 | 20,875,000 | 16,396,000 | 20,670,000 | 14,661,000 | 26,383,000 | 22,197,000 | 73,399,000 | 83,911,000 | 96,419,000 |
Income (loss) before income tax provision (benefit) | -4,761,000 | -7,989,000 | -3,138,000 | -8,278,000 | -4,970,000 | -8,089,000 | 1,701,000 | -2,005,000 | -24,166,000 | -13,363,000 | 2,265,000 |
Income tax provision (benefit) | 13,000 | 8,000 | 20,000 | 10,227,000 | 555,000 | -1,713,000 | 670,000 | -797,000 | 10,268,000 | -1,285,000 | 184,000 |
Net income (loss) | -4,774,000 | -7,997,000 | -3,158,000 | -18,505,000 | -5,525,000 | -6,376,000 | 1,031,000 | -1,208,000 | -34,434,000 | -12,078,000 | 2,081,000 |
Basic and diluted earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings (loss) per share (in dollars per share) | ($0.23) | ($0.38) | ($0.17) | ($1.43) | ($0.43) | ($0.49) | $0.08 | ($0.09) | ($1.87) | ($0.94) | $0.16 |
Diluted earnings (loss) per share (in dollars per share) | ($0.23) | ($0.38) | ($0.17) | ($1.43) | ($0.43) | ($0.49) | $0.08 | ($0.09) | ($1.87) | ($0.94) | $0.16 |
Impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,100,000 | 719,000 |
Number of underperforming stores | ' | ' | ' | ' | ' | ' | ' | ' | 27 | 26 | 14 |
Non-cash tax charge and reversal of deferred tax asset valuation allowance | ' | ' | ' | 10,200,000 | 2,500,000 | 1,300,000 | ' | ' | ' | ' | ' |
Severance accruals | $106,000 | $638,000 | $956,000 | $1,500,000 | $61,000 | $227,000 | $152,000 | ' | $3,198,000 | $564,000 | $118,000 |
SCHEDULE_II_Valuation_and_Qual1
SCHEDULE II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Sales Return Reserve | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beg. of Period | $485,000 | $451,000 | $547,000 |
Additions, Charge to Costs and Expenses | 175,000 | 34,000 | ' |
Deductions | ' | ' | 96,000 |
Balance at End of Period | 660,000 | 485,000 | 451,000 |
Deferred Tax Valuation Allowance | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beg. of Period | 8,963,000 | 5,172,000 | 5,734,000 |
Additions, Charge to Costs and Expenses | 19,400,000 | 3,791,000 | ' |
Deductions | ' | ' | 562,000 |
Balance at End of Period | $28,363,000 | $8,963,000 | $5,172,000 |