Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 30, 2015 | Apr. 17, 2015 | Aug. 01, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Lands' End, Inc. | ||
Entity Central Index Key | 799288 | ||
Current Fiscal Year End Date | -29 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 30-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 31,956,521 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $452.80 |
Consolidated_and_Combined_Stat
Consolidated and Combined Statements of Comprehensive Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
REVENUES | |||
Merchandise sales and services, net | $1,555,353 | $1,562,876 | $1,585,927 |
COSTS AND EXPENSES | |||
Cost of sales (excluding depreciation and amortization) | 819,422 | 852,539 | 881,817 |
Selling and administrative | 573,335 | 560,327 | 598,916 |
Depreciation and amortization | 19,703 | 21,599 | 23,121 |
Other operating expense, net | 3,250 | 70 | 70 |
Total costs and expenses | 1,415,710 | 1,434,535 | 1,503,924 |
Operating income | 139,643 | 128,341 | 82,003 |
Interest expense | 20,494 | 0 | 0 |
Other income, net | 1,408 | 50 | 67 |
Income before income taxes | 120,557 | 128,391 | 82,070 |
Income tax expense | 46,758 | 49,544 | 32,243 |
NET INCOME | 73,799 | 78,847 | 49,827 |
Other comprehensive (loss) income, net of tax | |||
Foreign currency translation adjustments | -5,303 | 1,166 | -1,623 |
COMPREHENSIVE INCOME | $68,496 | $80,013 | $48,204 |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS (Note 2) | |||
Basic earnings per share (in dollars per share) | $2.31 | $2.47 | $1.56 |
Diluted earnings per share (in dollars per share) | $2.31 | $2.47 | $1.56 |
Basic weighted average common shares outstanding | 31,957,000 | 31,957,000 | 31,957,000 |
Diluted weighted average common shares outstanding | 32,016,000 | 31,957,000 | 31,957,000 |
Consolidated_and_Combined_Bala
Consolidated and Combined Balance Sheets (USD $) | Jan. 30, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $221,454 | $22,411 |
Restricted cash | 3,300 | 3,300 |
Accounts receivable, net | 30,073 | 33,617 |
Inventories, net | 301,367 | 369,928 |
Deferred tax assets | 3,438 | 0 |
Prepaid expenses and other current assets | 31,408 | 21,993 |
Total current assets | 591,040 | 451,249 |
Property and equipment, net | 101,223 | 101,096 |
Goodwill | 110,000 | 110,000 |
Intangible assets, net | 528,712 | 531,342 |
Other assets | 22,462 | 588 |
TOTAL ASSETS | 1,353,437 | 1,194,275 |
Current liabilities | ||
Accounts payable | 132,796 | 115,387 |
Deferred tax liabilities | 0 | 4,019 |
Other current liabilities | 107,553 | 83,955 |
Total current liabilities | 240,349 | 203,361 |
Long-term debt | 505,988 | 0 |
Long-term deferred tax liabilities | 184,483 | 195,534 |
Other liabilities | 18,424 | 3,066 |
TOTAL LIABILITIES | 949,244 | 401,961 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01- authorized: 480,000,000 shares; issued and outstanding: 31,956,521 as of January 30, 2015 | 320 | 0 |
Additional paid-in capital | 342,294 | 0 |
Retained earnings | 68,877 | 0 |
Net parent company investment | 0 | 794,309 |
Accumulated other comprehensive loss | -7,298 | -1,995 |
Total stockholders’ equity | 404,193 | 792,314 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $1,353,437 | $1,194,275 |
Consolidated_and_Combined_Bala1
Consolidated and Combined Balance Sheets (Parenthetical) (USD $) | Jan. 30, 2015 |
Statement of Financial Position [Abstract] | |
Par value of stock | $0.01 |
Shares authorized for issuance | 480,000,000 |
Shares issued | 31,956,521 |
Shares outstanding | 31,956,521 |
Consolidated_and_Combined_Stat1
Consolidated and Combined Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $73,799 | $78,847 | $49,827 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,703 | 21,599 | 23,121 |
Product recall | 4,713 | 0 | 0 |
Amortization of debt issuance costs | 1,563 | 0 | 0 |
Loss on disposal of property and equipment | 239 | 70 | 70 |
Stock-based compensation | 2,118 | 0 | 0 |
Deferred income taxes | 17,545 | -4,961 | 3,066 |
Change in operating assets and liabilities: | |||
Inventories | 64,252 | 10,007 | 14,672 |
Accounts payable | 19,207 | 9,145 | 1,443 |
Other operating assets | -9,342 | -3,946 | 4,739 |
Other operating liabilities | 17,324 | 4,158 | -690 |
Net cash provided by operating activities | 211,121 | 114,919 | 96,248 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of property and equipment | 0 | 14 | 15 |
Change in restricted cash | 0 | 0 | 82 |
Purchases of property and equipment | -16,608 | -9,887 | -14,993 |
Net cash used in investing activities | -16,608 | -9,873 | -14,896 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Contributions from / (distributions to) Sears Holdings, net | 8,481 | -110,936 | -68,799 |
Proceeds from issuance of long-term debt | 515,000 | 0 | 0 |
Payments on term loan facility | -3,862 | 0 | 0 |
Debt issuance costs | -11,433 | 0 | 0 |
Dividend paid to a subsidiary of Sears Holdings Corporation | -500,000 | 0 | 0 |
Net cash provided by (used in) financing activities | 8,186 | -110,936 | -68,799 |
Effects of exchange rate changes on cash | -3,656 | 44 | 90 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 199,043 | -5,846 | 12,643 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 22,411 | 28,257 | 15,614 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 221,454 | 22,411 | 28,257 |
SUPPLEMENTAL INFORMATION: | |||
Unpaid liability to acquire property and equipment | 4,157 | 2,208 | 1,534 |
Income taxes paid | 19,842 | 4,059 | 5,333 |
Interest paid | $18,726 | $0 | $0 |
Consolidated_and_Combined_Stat2
Consolidated and Combined Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Net Parent Company Investment |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance, in USD at Jan. 27, 2012 | $843,832 | ($1,538) | $845,370 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 49,827 | 49,827 | ||||
Cumulative translation adjustment, net of tax | -1,623 | -1,623 | ||||
Contributions from / (distributions to) Sears Holdings, net | -68,799 | -68,799 | ||||
Ending Balance, in USD at Feb. 01, 2013 | 823,237 | -3,161 | 826,398 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 78,847 | 78,847 | ||||
Cumulative translation adjustment, net of tax | 1,166 | 1,166 | ||||
Contributions from / (distributions to) Sears Holdings, net | -110,936 | -110,936 | ||||
Ending Balance, in USD at Jan. 31, 2014 | 792,314 | -1,995 | 794,309 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 73,799 | 68,877 | 4,922 | |||
Cumulative translation adjustment, net of tax | -5,303 | -5,303 | ||||
Stock-based compensation expense | 2,118 | 2,118 | ||||
Contributions from / (distributions to) Sears Holdings, net | 8,481 | 8,481 | ||||
Dividend paid to Sears Holdings | -500,000 | -500,000 | ||||
Separation related adjustments | 32,784 | 32,784 | ||||
Reclassification of net parent company investment to common stock and additional paid-in capital in conjunction with the separation, in shares | 31,956,521 | |||||
Reclassification of net parent company investment to common stock and additional paid-in capital in conjunction with the separation, in USD | 320 | 340,176 | -340,496 | |||
Ending Balance, in USD at Jan. 30, 2015 | $404,193 | $320 | $342,294 | $68,877 | ($7,298) | $0 |
Ending Balance, in shares at Jan. 30, 2015 | 31,956,521 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 12 Months Ended |
Jan. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | BACKGROUND AND BASIS OF PRESENTATION |
Description of Business and Separation | |
Lands' End, Inc. (“Lands’ End” or the “Company”) is a leading multi-channel retailer of casual clothing, accessories and footwear, as well as home products. Lands' End offers products through catalogs, online at www.landsend.com and affiliated specialty and international websites, and through retail locations, primarily at Lands’ End Shops at Sears, stand-alone Lands’ End Inlet stores and international shop-in-shops that sell merchandise in various retail department stores. | |
Terms that are commonly used in the Company's notes to consolidated financial statements are defined as follows: | |
•Fiscal 2014 - The fifty-two weeks ended January 30, 2015 | |
•Fiscal 2013 - The fifty-two weeks ended January 31, 2014 | |
•Fiscal 2012 - The fifty-three weeks ended February 1, 2013 | |
•Fiscal 2015 - The Company's next fiscal year representing the fifty-two weeks ending January 29, 2016 | |
•Sears Holdings or Sears Holdings Corporation - Sears Holdings Corporation, a Delaware Corporation, and its consolidated subsidiaries (other than, for all periods following the Separation, Lands' End) | |
•Separation - On April 4, 2014 Sears Holdings distributed 100% of the outstanding common stock of Lands' End to its shareholders | |
•EPS - Earnings per share | |
•ESL - ESL Investments, Inc. and its investment affiliates, including Edward S. Lampert | |
•ABL Facility - Asset-based senior secured credit agreements, dated as of April 4, 2014, with Bank of America, N.A and certain other lenders | |
•Term Loan Facility - Term loan credit Agreement, dated as of April 4, 2014, with Bank of America, N.A. and certain other lenders | |
•Facilities - Collectively, the ABL Facility and the Term Loan Facility | |
•UK Borrower - A United Kingdom subsidiary borrower of Lands’ End under the ABL Facility | |
•GAAP - Accounting principles generally accepted in the United States | |
•SEC - United States Securities and Exchange Commission | |
•FASB - Financial Accounting Standards Board | |
• FASB ASC - FASB Accounting Standards Codification, which serves as the source for authoritative GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative GAAP for SEC registrants | |
•ASU -FASB Accounting Standards Update | |
•Tax Sharing Agreement - A tax sharing agreement entered into by Sears Holdings Corporation and Lands' End in connection with the Separation | |
•UTBs - Gross unrecognized tax benefits | |
•Sears Roebuck - Sears, Roebuck and Co., a subsidiary of Sears Holdings Corporation | |
•SHMC - Sears Holdings Management Corporation, a subsidiary of Sears Holdings Corporation | |
•SHCP - SHC Promotions LLC, a subsidiary of Sears Holdings Corporation | |
•CAM - Common area maintenance for leased properties | |
•SYWR - Shop Your Way Rewards member loyalty program | |
On March 14, 2014, the board of directors of Sears Holdings approved the distribution of the issued and outstanding shares of Lands’ End common stock on the basis of 0.300795 shares of Lands’ End common stock for each share of Sears Holdings Corporation common stock held on March 24, 2014. Sears Holdings Corporation distributed 100 percent of the outstanding common stock of Lands’ End to its shareholders on April 4, 2014. | |
A Registration Statement on Form 10 relating to the Separation was filed by the Company with the SEC, and was subsequently amended by the Company and declared effective by the SEC on March 17, 2014. The Company’s common stock began “regular way” trading on the NASDAQ Stock Market after the distribution date under the symbol “LE”. | |
Prior to the completion of the Separation, Sears Holdings transferred all the remaining assets and liabilities of Lands’ End that were held by Sears Holdings to Lands’ End or its subsidiaries. Lands’ End also paid a dividend of $500.0 million to a subsidiary of Sears Holdings Corporation. | |
Basis of Presentation | |
The financial statements presented herein represent (i) periods prior to April 4, 2014 when Lands' End was a wholly owned subsidiary of Sears Holdings Corporation (referred to as “Combined Financial Statements”) and (ii) the period as of and subsequent to April 4, 2014 when Lands' End became a separate publicly-traded company (referred to as “Consolidated Financial Statements”). | |
The Consolidated Financial Statements include the accounts of Lands' End, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. | |
The accompanying Consolidated and Combined Financial Statements have been prepared in accordance with GAAP. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. | |
Our historical Combined Financial Statements have been prepared on a stand-alone basis and have been derived from the consolidated financial statements and accounting records of Sears Holdings. The Combined Financial Statements include Lands’ End, Inc. and subsidiaries and certain other items related to the Lands’ End business which were held by Sears Holdings prior to the Separation. These items were contributed by Sears Holdings to Lands’ End, Inc. prior to the Separation. These historical Combined Financial Statements reflect the Company's financial position, results of operations and cash flows in conformity with GAAP. | |
The Combined Balance Sheets include the allocation of certain assets and liabilities that have historically been held by Sears Holdings but which are specifically identifiable or allocable to Lands’ End. All intracompany transactions and accounts have been eliminated. Prior to the Separation, all intercompany transactions between Sears Holdings and Lands’ End were considered to be effectively settled in the Combined Financial Statements at the time the transactions were recorded. The total net effect of the settlement of these intercompany transactions is reflected in the Combined Statements of Cash Flows as a financing activity and in the Combined Balance Sheets as Net parent company investment. | |
Through April 4, 2014, Sears Holdings Corporation’s investment in Lands’ End is shown as Net parent company investment in the Combined Balance Sheet. Upon completion of the Separation, the Company had 31,956,521 shares of common stock outstanding at a par value of $0.01 per share. After Separation adjustments were recorded, the remaining Net parent company investment, which includes all earnings prior to Separation, was transferred to Additional paid-in capital. | |
As a business operation of Sears Holdings, Lands' End did not maintain its own tax and certain other corporate support functions prior to the Separation. Lands' End entered into agreements with Sears Holdings for the continuation of certain of these services, as well as to support the Lands' End Shops at Sears. These expenses had been allocated to Lands’ End based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis based upon revenue, headcount, square footage or other measures. Lands’ End considers the expense allocation methodology and results to be reasonable for all periods presented. However, the costs and allocations charged to the Company by Sears Holdings do not necessarily reflect the costs of obtaining the services from unaffiliated third parties or of the Company providing the applicable services itself. The historical Combined Financial Statements contained herein may not be indicative of the Company’s financial position, operating results, and cash flows in the future, or what they would have been if it had been a stand-alone company during all periods presented. See Note 10 - Related Party Agreements and Transactions. | |
Prior to the Separation, Sears Holdings provided financing, cash management and other treasury services to Lands' End. Sears Holdings used a centralized approach to its United States domestic cash management and financing of its operations. The majority of the Company's cash was transferred to Sears Holdings on a daily basis. Sears Holdings was also the Company's only source of funding for its operating and investing activities. Upon Separation, cash and restricted cash held by Sears Holdings were not allocated to Lands’ End unless the cash or restricted cash was held by an entity that was transferred to Lands’ End. Sears Holdings’ third-party debt, and the related interest expense, was not allocated to Lands' End for any of the periods presented as it was not the legal obligor of the debt and the Sears Holdings' borrowings were not directly attributable to the Company's business. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Fiscal Year | |||||||||||||
The Company’s fiscal year end is on the Friday preceding the Saturday closest to January 31 each year. Fiscal Years 2014 and 2013 each consisted of 52 weeks while Fiscal Year 2012 consisted of 53 weeks. Unless the context otherwise requires. The following fiscal periods are presented in this report. | |||||||||||||
Fiscal Year | Ended | Weeks | |||||||||||
2014 | 30-Jan-15 | 52 | |||||||||||
2013 | 31-Jan-14 | 52 | |||||||||||
2012 | 1-Feb-13 | 53 | |||||||||||
Seasonality | |||||||||||||
The Company’s operations have historically been seasonal, with a disproportionate amount of net sales occurring in the fourth fiscal quarter, reflecting increased demand during the year-end holiday selling season. The impact of seasonality on results of operations is more pronounced since the level of certain fixed costs, such as occupancy and overhead expenses, do not vary with sales. The Company’s results of operations also may fluctuate based upon such factors as the timing of certain holiday seasons and promotions, the amount of net sales contributed by new and existing stores, the timing and level of markdowns, competitive factors, weather and general economic conditions. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reportable amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Cash and cash equivalents | |||||||||||||
The Company includes deposits in-transit from banks for payments related to third-party credit card and debit card transactions within cash. | |||||||||||||
Restricted cash | |||||||||||||
The Company classifies cash balances pledged as collateral for an employee benefit trust fund as Restricted cash on the Consolidated and Combined Balance Sheets. | |||||||||||||
Allowance for Doubtful Accounts | |||||||||||||
The Company provides an allowance for doubtful accounts based on both historical experience and specific identification. Allowances for doubtful accounts on accounts receivable balances were $0.7 million and $1.0 million as of January 30, 2015 and January 31, 2014, respectively. Accounts receivable balance is presented net of the Company’s allowance for doubtful accounts and is comprised of various customer-related accounts receivable. | |||||||||||||
Changes in the balance of the allowance for doubtful accounts are as follows for the following years: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Beginning balance | $ | 1,031 | $ | 1,316 | $ | 1,293 | |||||||
Provision | 371 | 444 | 721 | ||||||||||
Write-offs | (714 | ) | (729 | ) | (698 | ) | |||||||
Ending balance | $ | 688 | $ | 1,031 | $ | 1,316 | |||||||
Inventory | |||||||||||||
Inventories primarily consist of merchandise purchased for resale. For financial reporting and tax purposes, the Company’s United States inventory, primarily merchandise held for sale, is stated at last-in, first-out (“LIFO”) cost, which is lower than market. The Company accounts for its non-United States inventory on the first-in, first-out (“FIFO”) method. The United States inventory accounted for using the LIFO method was 83% and 85% of total inventory as of January 30, 2015 and January 31, 2014, respectively. If the FIFO method of accounting for inventory had been used, the effect on inventory would have been immaterial as of January 30, 2015 and January 31, 2014. | |||||||||||||
The Company maintains a reserve for excess and obsolete inventory. The reserve is calculated based on historical experience related to liquidation/disposal of identified inventory. The excess and obsolescence reserve balances were $18.2 million and $26.0 million January 30, 2015 and January 31, 2014, respectively. | |||||||||||||
Deferred Catalog Costs and Marketing | |||||||||||||
Costs incurred for direct response marketing consist primarily of catalog production and mailing costs that are generally amortized within two months from the date catalogs are mailed. Unamortized marketing costs reported as prepaid assets were $20.7 million and $15.6 million as of January 30, 2015 and January 31, 2014, respectively. The Company expenses the costs of marketing for website, magazines, newspaper, radio and other general media when the marketing takes place. Marketing expenses, including catalog costs amortization, website-related costs and other print media were $208.0 million, $198.6 million and $204.1 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. These costs are included within Selling and administrative expenses in the accompanying Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are recorded at cost, less accumulated depreciation. Additions and substantial improvements are capitalized and include expenditures that materially extend the useful lives of existing facilities and equipment. Maintenance and repairs that do not materially improve or extend the lives of the respective assets are expensed as incurred. As of the balance sheet dates, Property and equipment, net consisted of the following: | |||||||||||||
(in thousands) | Asset Lives | 30-Jan-15 | 31-Jan-14 | ||||||||||
Land | — | 3,529 | 3,563 | ||||||||||
Buildings and improvements | 15-30 | 100,583 | 101,249 | ||||||||||
Furniture, fixtures and equipment | 10-Mar | 76,938 | 75,625 | ||||||||||
Computer hardware and software | 5-Mar | 73,062 | 65,810 | ||||||||||
Leasehold improvements | 7-Mar | 12,781 | 12,517 | ||||||||||
Gross property and equipment | 266,893 | 258,764 | |||||||||||
Accumulated depreciation | (165,670 | ) | (157,668 | ) | |||||||||
Total property and equipment, net | 101,223 | 101,096 | |||||||||||
Depreciation expense is recorded over the estimated useful lives of the respective assets using the straight-line method. Leasehold improvements are depreciated over the shorter of the associated lease term or the estimated useful life of the asset. Depreciation expense included within Depreciation and amortization expense reported in the accompanying Consolidated and Combined Statements of Comprehensive Operations was $17.1 million, $19.0 million and $20.5 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | |||||||||||||
Long-lived assets, including property and equipment and finite-lived intangible assets (customer lists) are subject to a review for impairment if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future undiscounted cash flows generated by an asset or asset group is less than its carrying amount, the Company then determines the fair value of the asset generally by using a discounted cash flow model. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value as determined based on quoted market prices or through the use of other valuation techniques. There were no impairments recognized in Fiscal 2014, Fiscal 2013 or Fiscal 2012. | |||||||||||||
Goodwill and Intangible Asset Impairment Assessments | |||||||||||||
Goodwill, trade name and other intangible assets are tested separately for impairment on an annual basis, or are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The majority of the Company's goodwill and intangible assets relate to Kmart Holding Corporation’s acquisition of Sears Roebuck in March 2005. The calculation for an impairment loss compares the carrying value of the asset to that asset’s estimated fair value, which may be based on estimated future discounted cash flows or quoted market prices. Lands' End recognizes an impairment loss if the asset’s carrying value exceeds its estimated fair value. | |||||||||||||
Frequently the Company's impairment loss calculations contain multiple uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including forecasting cash flows under different scenarios. Lands' End performs annual goodwill and indefinite-lived intangible asset impairment tests on the last day of the Company's November accounting period each year and updates the tests between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit or indefinite-lived intangible asset below its carrying amount. However, if actual results are not consistent with the Company's estimates and assumptions used in estimating future cash flows and asset fair values, the Company may be exposed to losses that could be material. | |||||||||||||
Goodwill impairment assessments. The Company's goodwill resides in the Direct reporting unit. The goodwill impairment test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. Lands' End estimates fair value using the best information available, using both a market approach, as well as a discounted cash flow model, commonly referred to as the income approach. The market approach determines a value of the reporting unit by deriving market multiples for the reporting unit based on assumptions potential market participants would use in establishing a bid price for the reporting unit. This approach therefore assumes strategic initiatives will result in improvements in operational performance in the event of purchase, and includes the application of a discount rate based on market participant assumptions with respect to capital structure and access to capital markets. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects current market conditions appropriate to the Company's reporting unit. The projection uses management’s best estimates of economic and market conditions over the projected period, including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. The Company's final estimate of the fair value of the reporting unit is developed by weighting the fair values determined through both the market participant and income approaches, where comparable market participant information is available. | |||||||||||||
If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporting unit was being acquired in a business combination. Specifically, the Company allocates the fair value to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, the Company records an impairment charge for the difference. | |||||||||||||
During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the fair value of the reporting unit exceeded the carrying value and, as such, the Company did not record any goodwill impairment charges. | |||||||||||||
Indefinite-lived intangible asset impairment assessments. Lands' End reviews the Company's indefinite-lived intangible asset, the Lands’ End trade name, for impairment by comparing the carrying amount of the asset to the sum of undiscounted cash flows expected to be generated by the asset. The Company considers the income approach when testing the intangible asset with indefinite life for impairment on an annual basis. Lands' End determined that the income approach, specifically the relief from royalty method, was most appropriate for analyzing the Company's indefinite-lived asset. This method is based on the assumption that, in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset class. The relief from royalty method involves two steps: (1) estimation of reasonable royalty rates for the assets and (2) the application of these royalty rates to a net sales stream and discounting the resulting cash flows to determine a value. The Company multiplied the selected royalty rate by the forecasted net sales stream to calculate the cost savings (relief from royalty payment) associated with the asset. The cash flows are then discounted to present value by the selected discount rate and compared to the carrying value of the asset. | |||||||||||||
During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the fair value of the indefinite-lived intangible asset exceeded its carrying value and, as such, the Company did not record any intangible asset impairment charges. | |||||||||||||
Financial Instruments with Off-Balance-Sheet Risk | |||||||||||||
Lands' End entered into the ABL Facility, which provides for maximum borrowings of $175.0 million for Lands' End, subject to a borrowing base, with a $30.0 million sub facility for the UK Borrower. The ABL Facility has a sub-limit of $70.0 million for domestic letters of credit and a sub-limit of $15.0 million for letters of credit for the UK Borrower. The ABL Facility is available for working capital and other general corporate purposes, and was undrawn at the Separation and at January 30, 2015, other than for letters of credit. The Company had borrowing availability under the ABL Facility of $159.5 million as of January 30, 2015, net of outstanding letters of credit of $15.5 million. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The Company determines the fair value of financial instruments in accordance with accounting standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value in accordance with GAAP. Under fair value measurement accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The Company reports the fair value of financial assets and liabilities based on the fair value hierarchy prescribed by accounting standards for fair value measurements, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. | |||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. Total accounts receivable were $30.1 million and $33.6 million as of January 30, 2015 and January 31, 2014, respectively. Bad debt expense was $0.4 million and $0.5 million in Fiscal 2014 and Fiscal 2013, respectively. At January 30, 2015 accounts receivable included $5.7 million due from Sears Holdings. | |||||||||||||
Cash and cash equivalents, Accounts receivable, Accounts payable and Other current liabilities are reflected in the Consolidated and Combined Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. | |||||||||||||
Long-term debt is reflected in the Consolidated and Combined Balance Sheets at amortized cost. The fair value of debt was determined utilizing level 2 valuation techniques based on the closing inactive market bid price on January 30, 2015. See Note 8—Fair Value of Financial Assets and Liabilities. | |||||||||||||
Foreign Currency Translations and Transactions | |||||||||||||
The Company translates the assets and liabilities of foreign subsidiaries from their respective functional currencies to United States dollars at the appropriate spot rates as of the balance sheet date. Revenue and expenses of operations are translated to United States dollars using weighted average exchange rates during the year. The foreign subsidiaries use the local currency as their functional currency. The effects of foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss in the accompanying Consolidated and Combined Statements of Changes in Stockholders' Equity. The Company recognized net foreign exchange transaction losses of $4.7 million, $1.8 million and $3.7 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, in the accompanying Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenues include sales of merchandise and delivery revenues related to merchandise sold. Revenue is recognized for the Direct segment when the merchandise is expected to be received by the customer and for the Retail segment at the time of sale in the store. | |||||||||||||
Revenues from merchandise sales and services are reported net of estimated returns and allowances and exclude sales taxes. Estimated returns and allowances are recorded as a reduction of sales and cost of sales. The reserve for sales returns and allowances is calculated based on historical experience and future expectations and is included in Other current liabilities on the Consolidated and Combined Balance Sheets. | |||||||||||||
Reserves for sales returns and allowances consisted of the following: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Beginning balance | $ | 13,805 | $ | 13,524 | $ | 14,607 | |||||||
Provision | 187,000 | 211,505 | 231,817 | ||||||||||
Write-offs | (186,937 | ) | (211,224 | ) | (232,900 | ) | |||||||
Ending balance | $ | 13,868 | $ | 13,805 | $ | 13,524 | |||||||
The Company sells gift certificates, gift cards and e-certificates (collectively, “gift cards”) to customers through both the Direct and Retail segments. The gift cards do not have expiration dates. Revenue from gift cards are recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) after 3 years when the likelihood of the gift card being redeemed by the customer is remote (“gift card breakage”) and the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Revenue recognized from gift card breakage was $1.7 million, $1.7 million and $1.5 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Cost of Sales | |||||||||||||
Cost of sales are comprised principally of the costs of merchandise, in-bound freight, duty, warehousing and distribution (including receiving, picking, packing, store delivery and value added costs), customer shipping and handling costs and physical inventory losses. Depreciation and amortization is not included in the Company's cost of sales. | |||||||||||||
The Company participates in Sears Holdings’ Shop Your Way Rewards member loyalty program. The expenses for this program are recorded in Cost of sales, as described in Note 10—Related Party Agreements and Transactions. | |||||||||||||
Selling and Administrative Expenses | |||||||||||||
Selling and administrative expenses are comprised principally of payroll and benefits costs for direct, retail and corporate employees, marketing, occupancy costs of retail stores and corporate facilities, buying, pre-opening costs and other administrative expenses. All stock-based compensation is recorded in Selling and administrative expenses. See Note 5—Stock-Based Compensation. | |||||||||||||
Prior to the Separation, expenses related to the Lands’ End Shops at Sears were allocated to the Company by Sears Holdings, as well as shared services, co-location and services costs. Subsequent to the Separation, these expenses were charged to the Company by Sears Holdings. Selling and administrative expenses included $62.3 million, $68.4 million and $75.4 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, of costs allocated or charged to the Company by Sears Holdings. See Note 10—Related Party Agreements and Transactions. | |||||||||||||
In September 2012, the Company recognized $2.5 million of restructuring expenses, primarily severance, related to an initiative to reduce the corporate cost structure. The liability on the Consolidated and Combined Balance Sheet as of January 31, 2014 was not material. | |||||||||||||
Other Operating Expense | |||||||||||||
Other operating expense in Fiscal 2014 consisted primarily of $3.0 million in costs associated with a recall of selected styles of children's sleepwear that did not meet the federal flammability standard. See Note 15—Subsequent Event. | |||||||||||||
Income Taxes | |||||||||||||
Deferred income tax assets and liabilities are based on the estimated future tax effects of differences between the financial and tax basis of assets and liabilities based on currently enacted tax laws. The tax balances and income tax expense recognized are based on management’s interpretation of the tax laws of multiple jurisdictions. Income tax expense also reflects best estimates and assumptions regarding, among other things, the level of future taxable income and tax planning. Future changes in tax laws, changes in projected levels of taxable income, tax planning and adoption and implementation of new accounting standards could impact the effective tax rate and tax balances recorded. | |||||||||||||
For purposes of the Combined Financial Statements, the tax provision represents the tax attributable to these operations as if the Company were required to file a separate tax return. Sears Holdings paid all United States federal, state and local taxes attributable to the Lands’ End business prior to the Separation and the related taxes payable and tax payments are reflected directly in Net parent company investment in the Combined Balance Sheets. Prior to the Separation taxes paid by Lands' End only represent taxes for its wholly owned foreign subsidiaries. Following the Separation, Lands' End is responsible for all taxes due. Taxes paid by Lands' End were $19.8 million, $4.1 million and $5.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Lands’ End and Sears Holdings Corporation entered into the Tax Sharing Agreement in connection with the Separation which governs Sears Holdings Corporation’s and Lands’ End’s respective rights, responsibilities and obligations after the Separation with respect to liabilities for United States federal, state, local and foreign taxes attributable to the Lands’ End business. In addition to the allocation of tax liabilities, the Tax Sharing Agreement addresses the preparation and filing of tax returns for such taxes and dispute resolution with taxing authorities regarding such taxes. Generally, Sears Holdings Corporation is liable for all pre-Separation United States federal, state and local income taxes. Lands’ End generally is liable for all other taxes attributable to its business, including all foreign income taxes. | |||||||||||||
Tax positions are recognized when they are more likely than not to be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is more likely than not to be realized upon settlement. The Company is subject to periodic audits by the United States Internal Revenue Service and other state and local taxing authorities. These audits may challenge certain of the Company’s tax positions such as the timing and amount of income and deductions and the allocation of taxable income to various tax jurisdictions. The Company evaluates its tax positions and establishes liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes. These tax uncertainties are reviewed as facts and circumstances change and are adjusted accordingly. This requires significant management judgment in estimating final outcomes. Interest and penalties are classified as Income tax expense in the Consolidated and Combined Statements of Comprehensive Operations. See Note 3—Income Taxes. | |||||||||||||
Self-Insurance | |||||||||||||
The Company has a self-insured plan for health and welfare benefits and provides an accrual to cover the obligation. The accrual for the self-insured liability is based on claims filed and an estimate of claims incurred but not yet reported. The Company considers a number of factors, including historical claims information, when determining the amount of the accrual. Costs related to the administration of the plan and related claims are expensed as incurred. Total expenses were $14.1 million, $16.2 million and $15.8 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
The Company also has a self-insured plan for certain costs related to workers’ compensation. The Company obtains third-party insurance coverage to limit exposure to this self-insured risk. | |||||||||||||
Postretirement Benefit Plan | |||||||||||||
Effective January 1, 2006, the Company decided to indefinitely suspend eligibility to the postretirement medical plan for future company retirees. In addition, the Company elected to immediately recognize all existing net actuarial losses and prior service costs. All future actuarial gains or losses were recognized in the year they occurred and were not material in Fiscal 2014, Fiscal 2013 and Fiscal 2012. At the time of the Separation the $1.5 million liability related to postretirement benefits was transferred to Sears Holdings Corporation as it assumed administration and funding of the plan after the Separation. This transaction was accounted for as an adjustment to Net parent company investment and did not result in cash flows. The net liability of the plan was $1.5 million and is included in the Combined Balance Sheet as of January 31, 2014. See Note 7—Postretirement Benefits and Retirement Plan. | |||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||
Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders, and is comprised solely of foreign currency translation adjustments and net income. | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Beginning balance: Accumulated other comprehensive loss (net of tax of $1,211, $1,938 and $942, respectively) | $ | (1,995 | ) | $ | (3,161 | ) | $ | (1,538 | ) | ||||
Other comprehensive income (loss) | |||||||||||||
Foreign currency translation adjustments (net of tax (expense) benefit of $2,720, $(727), and $996, respectively) | (5,303 | ) | 1,166 | (1,623 | ) | ||||||||
Ending balance: Accumulated other comprehensive loss (net of tax of $3,931, $1,211, and $1,938, respectively) | $ | (7,298 | ) | $ | (1,995 | ) | $ | (3,161 | ) | ||||
Comprehensive income—no amounts were reclassified out of Accumulated other comprehensive loss during any of the periods presented. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Stock-based compensation expense for restricted stock units is determined based on the grant date fair value. The fair value is determined based on the Company's stock price on the date of the grant. The Company recognizes stock-based compensation cost net of estimated forfeitures and revises the estimates in subsequent periods if actual forfeitures differ from the estimates. The Company estimates the forfeiture rate based on historical data as well as expected future behavior. Stock-based compensation is recorded in Selling and administrative expense in the Consolidated and Combined Statements of Comprehensive Operations over the period in which the employee is required to provide service in exchange for the restricted stock units. | |||||||||||||
Earnings per Share | |||||||||||||
The numerator for both basic and diluted EPS is net income attributable to Lands’ End. The denominator for basic EPS is based upon the number of weighted average shares of Lands’ End common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of Lands’ End common stock and common stock equivalents outstanding during the reporting periods using the treasury stock method in accordance with the FASB ASC. For periods ended April 4, 2014 and prior, basic EPS is computed using the number of shares of Lands’ End common stock outstanding on April 4, 2014, the date on which the Lands’ End common stock was distributed to the stockholders of Sears Holdings Corporation. The same number of shares was used to calculate basic and diluted EPS for Fiscal 2013 and Fiscal 2012 as there were no dilutive securities during these periods. | |||||||||||||
The following table summarizes the components of basic and diluted EPS: | |||||||||||||
(in thousands, except per share amounts) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Net income | $ | 73,799 | $ | 78,847 | $ | 49,827 | |||||||
Basic weighted average shares outstanding | 31,957 | 31,957 | 31,957 | ||||||||||
Dilutive effect of stock awards | 59 | — | — | ||||||||||
Diluted weighted average shares outstanding | 32,016 | 31,957 | 31,957 | ||||||||||
Basic earnings per share | $ | 2.31 | $ | 2.47 | $ | 1.56 | |||||||
Diluted earnings per share | $ | 2.31 | $ | 2.47 | $ | 1.56 | |||||||
Anti-dilutive stock awards are comprised of awards which are anti-dilutive in the application of the treasury stock method. There were no anti-dilutive securities excluded from the diluted weighted average shares outstanding. | |||||||||||||
New Accounting Pronouncements | |||||||||||||
Revenue from Contracts with Customers | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for Lands' End in the first quarter of its fiscal year ending February 2, 2018. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's Consolidated and Combined Financial Statements. | |||||||||||||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||||||||||||
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which modifies the requirements for disposals to qualify as discontinued operations and expands related disclosure requirements. This guidance will be effective for Lands' End in its fiscal year ending January 29, 2016. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated and Combined Financial Statements. | |||||||||||||
Simplifying the Presentation of Debt Issuance Costs | |||||||||||||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the required presentation of debt issuance costs from an asset on the balance sheet to a deduction from the related debt liability. This guidance will be effective for Lands' End in its fiscal year ending January 27, 2017. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated and Combined Financial Statements. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 30, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
The Company’s income before income taxes in the United States and in foreign jurisdictions is as follows: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Income before income taxes: | ||||||||||||
United States | $ | 114,772 | $ | 117,318 | $ | 65,131 | ||||||
Foreign | 5,785 | 11,073 | 16,939 | |||||||||
Total income before income taxes | $ | 120,557 | $ | 128,391 | $ | 82,070 | ||||||
The components of the provision for income taxes are as follows: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
United States | $ | 44,503 | $ | 46,272 | $ | 27,645 | ||||||
Foreign | 2,255 | 3,272 | 4,598 | |||||||||
Total provision | $ | 46,758 | $ | 49,544 | $ | 32,243 | ||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 20,902 | $ | 46,355 | $ | 18,892 | ||||||
State | 6,361 | 5,631 | 5,678 | |||||||||
Foreign | 1,950 | 2,519 | 4,607 | |||||||||
Total current | 29,213 | 54,505 | 29,177 | |||||||||
Deferred: | ||||||||||||
Federal | 14,579 | (4,238 | ) | 3,725 | ||||||||
State | 2,661 | (426 | ) | (650 | ) | |||||||
Foreign | 305 | (297 | ) | (9 | ) | |||||||
Total deferred | 17,545 | (4,961 | ) | 3,066 | ||||||||
Total provision | $ | 46,758 | $ | 49,544 | $ | 32,243 | ||||||
A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: | ||||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Tax at statutory federal tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 2.9 | % | 2.6 | % | 4 | % | ||||||
Other, net | 0.9 | % | 1 | % | 0.3 | % | ||||||
Total | 38.8 | % | 38.6 | % | 39.3 | % | ||||||
Deferred tax assets and liabilities consisted of the following: | ||||||||||||
(in thousands) | January 30, | January 31, | ||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | $ | 7,894 | $ | 4,144 | ||||||||
Credit carryforwards | 5,964 | — | ||||||||||
Product recall and other reserves | 5,253 | — | ||||||||||
Deferred compensation | 4,823 | — | ||||||||||
Reserve for returns | 4,695 | 4,376 | ||||||||||
Benefit plans | — | 1,734 | ||||||||||
Inventory | 4,822 | 5,631 | ||||||||||
Property and equipment | 153 | 1,233 | ||||||||||
Insurance reserves | 827 | 945 | ||||||||||
Other | 10,469 | 8,323 | ||||||||||
Total deferred tax assets | 44,900 | 26,386 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | 197,786 | 197,680 | ||||||||||
LIFO reserve | 19,864 | 17,924 | ||||||||||
Unremitted foreign earnings | 4,782 | 4,178 | ||||||||||
Catalog marketing | 3,474 | 3,280 | ||||||||||
Other | 39 | 2,877 | ||||||||||
Total deferred tax liabilities | 225,945 | 225,939 | ||||||||||
Net deferred tax liability | 181,045 | 199,553 | ||||||||||
Less current deferred tax (asset) liability | (3,438 | ) | 4,019 | |||||||||
Long-term deferred tax liability | $ | 184,483 | $ | 195,534 | ||||||||
The Company has a deferred tax asset of approximately $6.0 million in foreign tax credits which are being carried forward and will expire in 2023. | ||||||||||||
A reconciliation of the beginning and ending amount of UTBs for the fiscal years is as follows: | ||||||||||||
Federal, State and Foreign Tax | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Gross UTB balance at beginning of period | $ | 8,718 | $ | 8,507 | $ | 8,209 | ||||||
Tax positions related to the current period—gross increases | 364 | 252 | 298 | |||||||||
Tax positions related to the prior periods—gross decreases | — | (41 | ) | — | ||||||||
Settlements | — | — | — | |||||||||
Lapse of statutes of limitations | — | — | — | |||||||||
Gross UTB balance at end of period | $ | 9,082 | $ | 8,718 | $ | 8,507 | ||||||
As of January 30, 2015, the Company had UTBs of $9.1 million. Of this amount, $5.9 million would, if recognized, impact its effective tax rate. The Company does not expect that UTBs will fluctuate in the next 12 months for tax audit settlements and the expiration of the statute of limitations for certain jurisdictions. Pursuant to the Tax Sharing Agreement, Sears Holdings Corporation is generally responsible for all United States federal, state and local UTBs through the date of the Separation and, as such, the UTBs are recorded in Other liabilities in the Consolidated and Combined Balance Sheets, and an indemnification asset from Sears Holdings Corporation for the $8.8 million pre-Separation UTBs is recorded in Other assets in the Consolidated and Combined Balance Sheets. | ||||||||||||
The Company classifies interest expense and penalties related to UTBs and interest income on tax overpayments as components of income tax expense. As of January 30, 2015, the total amount of interest expense and penalties recognized on the balance sheet was $5.5 million ($3.6 million net of federal benefit). As of January 31, 2014, the total amount of interest and penalties recognized on the balance sheet was $4.9 million ($3.2 million net of federal benefit). The total amount of net interest expense recognized in the Consolidated and Combined Statements of Comprehensive Operations was $0.4 million, $0.4 million and $0.8 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012. Sears Holdings and Lands' End files income tax returns in both the United States and various foreign jurisdictions. The Internal Revenue Service has completed its examination of all federal income tax returns of Sears Holdings through the 2009 return, and all matters arising from such examinations have been resolved. Sears Holdings and the Company are under examination by various state income tax jurisdictions for the years 2002–2012. | ||||||||||||
Impacts of Separation | ||||||||||||
Prior to the Separation, the tax provision and related tax accounts represented the tax attributable to the Company as if the Company filed a separate tax return. However, the computed obligations were settled through Sears Holdings Corporation. Accordingly, the taxes payable and related tax payments were reflected directly in Net parent company investment in the Consolidated and Combined Balance Sheets. | ||||||||||||
As a result of the Separation, the Company will be filing its own income tax returns and, as a result certain tax attributes previously included in Net parent company investment have been reclassified. Specifically, subsequent to the Separation the Company reclassified (i) $30.4 million of deferred tax assets related primarily to foreign tax credits; and (ii) a $13.7 million reserve for uncertain tax positions (including penalties and interest) out of Net parent company investment and into Deferred tax liabilities and Other liabilities, respectively, in the Consolidated and Combined Balance Sheets. In addition, pursuant to the tax sharing agreement, a $13.7 million receivable was recorded by the Company to reflect the indemnification by Sears Holdings Corporation of the pre-Separation uncertain tax positions (including penalties and interest) for which Sears Holdings is responsible. This receivable has been included in Other assets in the Consolidated and Combined Balance Sheets. |
Leases
Leases | 12 Months Ended | |||
Jan. 30, 2015 | ||||
Leases [Abstract] | ||||
Leases | LEASES | |||
The Company leases stores, office space and warehouses under various leasing arrangements. As of January 30, 2015, the Company leases store space in 236 Sears Holdings store locations (see Note 10—Related Party Agreements and Transactions) and 14 Lands’ End Inlet Stores. The total number of retail stores, 255, includes one Lands’ End Inlet Store that is owned by the Company and 5 international shop-in-shops which have no required minimum lease payments. All leases are accounted for as operating leases. Operating lease obligations are based upon contractual minimum rents. Certain leases include renewal options. | ||||
Total rental expense under operating leases was $32.0 million, $33.1 million and $34.5 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||
Total future commitments under these operating leases (primarily leased Lands’ End Shops at Sears space at Sears Holdings locations as described in Note 10—Related Party Agreements and Transactions) as of January 30, 2015 are as follows for the years ending (in thousands): | ||||
2015 | $ | 29,123 | ||
2016 | 27,380 | |||
2017 | 26,516 | |||
2018 | 18,365 | |||
2019 | 11,709 | |||
Thereafter | 5,356 | |||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||
Jan. 30, 2015 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION | ||||||
Accounting standards require, among other things, that (i) the fair value of all stock awards be expensed over their respective vesting periods; (ii) the amount of cumulative compensation cost recognized at any date must at least be equal to the portion of the grant-date value of the award that is vested at that date and (iii) compensation expense include a forfeiture estimate for those shares not expected to vest. Also in accordance with these provisions, for awards that only have a service requirement with multiple vest dates, the Company is required to recognize compensation cost on a straight-line basis over the requisite service period for the entire award. | |||||||
The Company has granted time vesting stock awards ("Deferred Awards") and performance-based stock awards ("Performance Awards") to employees at management levels and above. Deferred Awards were granted in the form of restricted stock units that only require each recipient to complete a service period. Deferred Awards generally vest ratably over three years. Performance Awards were granted in the form of restricted stock units which have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. Performance Awards have annual vesting, but due to the performance criteria, are not eligible for straight-line expensing. Therefore, Performance Awards are amortized using a graded expense process. The fair value of all awards is based on the closing price of the Company’s common stock on the grant date. Compensation expense is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. | |||||||
The following table summarizes the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Consolidated and Combined Statements of Comprehensive Income: | |||||||
(in thousands) | Fiscal 2014 | ||||||
Performance Awards | $ | 1,883 | |||||
Deferred Awards | 235 | ||||||
Total stock-based compensation expense | $ | 2,118 | |||||
Stock-based compensation costs for certain executives participating in stock-based compensation plans administered by Sears Holdings were included in Selling and administrative expenses and were not material for Fiscal 2013 and Fiscal 2012. | |||||||
Awards Granted Year to Date January 30, 2015 | |||||||
The Company granted Deferred Awards and Performance Awards to various employees during Fiscal 2014. Generally, the Deferred Awards have a three year vesting period with 25% of the award vesting in both the first and second years and 50% vesting in the third year. In general, the Performance Awards granted to executives vest over a 3-year service period and have a performance measure at the end of the first year of service. If earned, 25% of the awards vest in the first and second years and 50% vests in the third year. | |||||||
Changes in the Company’s Unvested Stock Awards Year to Date January 30, 2015 | |||||||
Deferred Awards | |||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
(in thousands) | |||||||
Unvested Deferred Awards, beginning of period | — | $ | — | ||||
Granted | 47 | 27.86 | |||||
Forfeited | (3 | ) | 27.58 | ||||
Unvested Deferred Awards, end of period | 44 | 28.01 | |||||
Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $1.0 million as of January 30, 2015, which will be recognized over a weighted average period of approximately 2.3 years. | |||||||
Performance Awards | |||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
(in thousands) | |||||||
Unvested Performance Awards, beginning of period | — | $ | — | ||||
Granted | 304 | 27.56 | |||||
Forfeited | (107 | ) | 26.73 | ||||
Unvested Performance Awards, end of period | 197 | 28.01 | |||||
Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $3.6 million as of January 30, 2015, which will be recognized over a weighted average period of approximately 2.3 years. |
Debt
Debt | 12 Months Ended | ||||
Jan. 30, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Debt | DEBT | ||||
Debt Arrangements | |||||
In connection with the Separation, Lands’ End entered into an ABL Facility, which provides for maximum borrowings of $175.0 million for Lands’ End, subject to a borrowing base, with a $30.0 million sub facility for the UK Borrower. The ABL Facility has a sub-limit of $70.0 million for domestic letters of credit and a sub-limit of $15.0 million for letters of credit for the UK Borrower. The ABL Facility is available for working capital and other general corporate purposes, and was undrawn at the Separation and at January 30, 2015, other than for letters of credit. The Company had borrowing availability under the ABL Facility of $159.5 million as of January 30, 2015, net of outstanding letters of credit of $15.5 million. | |||||
Also on April 4, 2014, Lands’ End entered into a Term Loan Facility of $515.0 million, the proceeds of which were used to pay a dividend of $500.0 million to a subsidiary of Sears Holdings Corporation immediately prior to the Separation and to pay fees and expenses associated with the Facilities of approximately $11.4 million, with the remaining proceeds used for general corporate purposes. The fees were capitalized as debt issuance costs, and are included in Other assets on the Consolidated and Combined Balance Sheets and are being amortized as an adjustment to Interest expense over the remaining life of the Facilities. | |||||
Maturity; Amortization and Prepayments | |||||
The ABL Facility will mature on April 4, 2019. The Term Loan Facility will mature on April 4, 2021, will amortize at a rate equal to 1% per annum, and is subject to mandatory prepayment in an amount equal to a percentage of the borrower’s excess cash flows in each fiscal year, ranging from 0% to 50% depending on Lands’ End’s secured leverage ratio, and the proceeds from certain asset sales and casualty events. The Company’s aggregate scheduled maturities of the Term Loan Facility as of January 30, 2015 are as follows: | |||||
(in thousands) | |||||
Less than 1 year | $ | 5,150 | |||
1 - 2 years | 5,150 | ||||
2 - 3 years | 5,150 | ||||
3 - 4 years | 5,150 | ||||
4 - 5 years | 5,150 | ||||
Thereafter | 485,388 | ||||
$ | 511,138 | ||||
The current portion of the Term Loan Facility is included in Other current liabilities on the Consolidated Balance Sheet. | |||||
Guarantees; Security | |||||
All domestic obligations under the Facilities are unconditionally guaranteed by Lands’ End and, subject to certain exceptions, each of its existing and future direct and indirect domestic subsidiaries. In addition, the obligations of the UK Borrower under the ABL Facility are guaranteed by its existing and future direct and indirect subsidiaries organized in the United Kingdom. The ABL Facility is secured by a first priority security interest in certain working capital of the borrowers and guarantors consisting primarily of accounts receivable and inventory. The Term Loan Facility is secured by a second priority security interest in the same collateral, with certain exceptions. | |||||
The Term Loan Facility also is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets and stock of subsidiaries. The ABL Facility is secured by a second priority security interest in the same collateral. | |||||
Interest; Fees | |||||
The interest rate on the Term Loan Facility was 4.25% at January 30, 2015. The interest rates per annum applicable to the loans under the Facilities are based on a fluctuating rate of interest measured by reference to, at the borrowers’ election, either (i) an adjusted London inter-bank offered rate (“LIBOR”) plus a borrowing margin, or (ii) an alternative base rate plus a borrowing margin. The borrowing margin is fixed for the Term Loan Facility at 3.25% in the case of LIBOR loans and 2.25% in the case of base rate loans. For the Term Loan Facility, LIBOR is subject to a 1% interest rate floor. The borrowing margin for the ABL Facility is subject to adjustment based on the average excess availability under the ABL Facility for the preceding fiscal quarter, and will range from 1.50% to 2.00% in the case of LIBOR borrowings and will range from 0.50% to 1.00% in the case of base rate borrowings. | |||||
Customary agency fees are payable in respect of both Facilities. The ABL Facility fees also include (i) commitment fees, based on a percentage ranging from approximately 0.25% to 0.375% of the daily unused portions of the ABL Facility, and (ii) customary letter of credit fees. | |||||
Representations and Warranties; Covenants | |||||
Subject to specified exceptions, the Facilities contain various representations and warranties and restrictive covenants that, among other things, restrict the ability of Lands’ End and its subsidiaries to incur indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of their business. In addition, if excess availability under the ABL Facility falls below the greater of 10% of the loan cap amount or $15.0 million, Lands’ End will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0. The Facilities do not otherwise contain financial maintenance covenants. The Company was in compliance with all financial covenants related to the Facilities as of January 30, 2015. | |||||
The Facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance, and providing additional guarantees and collateral in certain circumstances. | |||||
Events of Default | |||||
The Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, and material judgments and change of control. |
Postretirement_Benefits_and_Re
Postretirement Benefits and Retirement Plan | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||
Postretirement Benefits and Retirement Plan | POSTRETIREMENT BENEFITS AND RETIREMENT PLAN | ||||||||||||
The Company had a plan to provide group medical benefits for eligible retired employees. The costs of these insurance benefits were previously recognized as the eligible employees render service. Effective January 1, 2006, the Company decided to indefinitely suspend eligibility to the postretirement medical plan for future company retirees. At the time of the Separation the $1.5 million liability related to postretirement benefits was transferred to Sears Holdings Corporation as it assumed administration and funding of the plan after the Separation. This transaction was accounted for as an adjustment to Net parent company investment and did not result in cash flows. | |||||||||||||
The following table presents the change in the benefit obligation: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | |||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 1,541 | $ | 1,678 | |||||||||
Transfer to Sears Holdings | (1,526 | ) | — | ||||||||||
Interest cost | 12 | 58 | |||||||||||
Plan participants’ contributions | — | 18 | |||||||||||
Actuarial gain | (27 | ) | (103 | ) | |||||||||
Benefits paid | — | (110 | ) | ||||||||||
Benefit obligation at end of year, net amount recognized | $ | — | $ | 1,541 | |||||||||
Change in plan assets at fair value: | |||||||||||||
Employer contributions | $ | — | $ | 92 | |||||||||
Plan participants’ contributions | — | 18 | |||||||||||
Benefits paid | — | (110 | ) | ||||||||||
Plan assets at end of year | $ | — | $ | — | |||||||||
The components of net periodic benefit (income) cost are as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Interest cost | $ | 12 | $ | 58 | $ | 70 | |||||||
Recognized net actuarial (gain) loss | (27 | ) | (103 | ) | 29 | ||||||||
Total postretirement benefit (income) cost | $ | (15 | ) | $ | (45 | ) | $ | 99 | |||||
Weighted-average assumption at end of year: | |||||||||||||
Discount rate | N/A | 4 | % | 4.2 | % | ||||||||
For measurement purposes, an 8.0% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014 and beyond, moving to an ultimate downward trend rate of 5.0% for 2020 and remaining at that level thereafter. An increase or decrease of one percentage point in the assumed health care trend rate would not have a material effect on the Combined Financial Statements. | |||||||||||||
The Company also has a 401(k) retirement plan, which covers most regular employees and allows them to make contributions. The Company also provides a matching contribution on a portion of the employee contributions. Total expense provided under this plan was $3.4 million, $3.3 million and $3.6 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended | ||||||||
Jan. 30, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value of Financial Assets and Liabilities | FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | ||||||||
The Company determines fair value of financial assets and liabilities based on the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels: | |||||||||
Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide ongoing pricing information. | |||||||||
Level 2 inputs—inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates. | |||||||||
Level 3 inputs—unobservable inputs for the asset or liability. | |||||||||
Restricted cash is reflected on the Consolidated and Combined Balance Sheets at fair value. The fair value of Restricted cash as of January 30, 2015 and January 31, 2014 was $3.3 million, based on Level 1 inputs. Restricted cash amounts are valued based upon statements received from financial institutions. | |||||||||
Cash and cash equivalents, Accounts receivable, Accounts payable and Other current liabilities are reflected on the Consolidated and Combined Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. | |||||||||
Carrying values and fair values of other financial instruments in the Consolidated and Combined Balance Sheets are as follows: | |||||||||
January 30, 2015 | |||||||||
(in thousands) | Carrying | Fair | |||||||
Amount | Value | ||||||||
Long-term debt, including short-term portion | $ | 511,138 | $ | 491,331 | |||||
Long-term debt was valued utilizing level 2 valuation techniques based on the closing inactive market bid price on January 30, 2015. There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of January 30, 2015 and January 31, 2014. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||
Jan. 30, 2015 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase accounting method. The net carrying amounts of goodwill, trade name and customer lists are included within the Company's Direct segment. There were no impairments of goodwill or intangible assets during any periods presented or since the goodwill and intangible assets were first recognized. | |||||||||||||||||||
The following summarizes goodwill and intangible assets: | |||||||||||||||||||
January 30, 2015 | January 31, 2014 | ||||||||||||||||||
(in thousands) | Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||
Customer lists | 10 | $ | 26,300 | $ | 25,888 | $ | 26,300 | $ | 23,258 | ||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||
Trade names | 528,300 | — | 528,300 | — | |||||||||||||||
Gross intangible assets | $ | 554,600 | $ | 25,888 | $ | 554,600 | $ | 23,258 | |||||||||||
Total intangible assets, net | $ | 528,712 | $ | 531,342 | |||||||||||||||
Goodwill | $ | 110,000 | $ | 110,000 | |||||||||||||||
Annual Amortization Expense (in thousands) | |||||||||||||||||||
Fiscal 2014 | $ | 2,630 | |||||||||||||||||
Fiscal 2013 | 2,630 | ||||||||||||||||||
Fiscal 2012 | 2,630 | ||||||||||||||||||
Estimated Future Amortization Expense (in thousands) | |||||||||||||||||||
Fiscal 2015 | $ | 412 | |||||||||||||||||
Related_Party_Agreements_and_T
Related Party Agreements and Transactions | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Related Party Agreements and Transactions | RELATED PARTY AGREEMENTS AND TRANSACTIONS | ||||||||||||
According to statements on form Schedule 13D filed with the SEC by ESL, ESL beneficially owned significant portions of both the Company's and Sears Holdings Corporation's outstanding shares of common stock. Therefore Sears Holdings Corporation, the Company's former parent company, is considered a related party both prior to and subsequent to the Separation. | |||||||||||||
Prior to the Separation, Sears Holdings Corporation (including certain of its non-Lands’ End subsidiaries) and the Company entered into various agreements to, among other things: (i) support the Lands’ End Shops at Sears; (ii) provide various general corporate services; (iii) support the Company's participation in the Shop Your Way Rewards program; and (iv) allow for the use of intellectual property or services. The amounts charged to the Company by Sears Holdings do not necessarily reflect the costs of obtaining the services from unaffiliated third parties or of the Company providing the applicable services itself. Management believes that such costs are reasonable; however, the Combined Financial Statements contained herein may not be indicative of the Company’s financial position, operating results, and cash flows in the future, or what they would have been if it had been a stand-alone company during all periods presented. Unless indicated otherwise, the fees and expense charged are included in Selling and administrative expense in the Combined Statements of Comprehensive Operations. | |||||||||||||
In connection with the Separation, the Company entered into various agreements with Sears Holdings which, among other things, (i) govern specified aspects of the Company's relationship following the Separation, especially with regards to the Lands’ End Shops at Sears, and (ii) establish terms pursuant to which subsidiaries of Sears Holdings Corporation are providing services to us, including the International Buying Office under the Buying Agency Agreement. | |||||||||||||
References to and descriptions of the agreements below represent the agreements entered into in connection with the Separation. | |||||||||||||
The components of the transactions between the Company and Sears Holdings, which exclude pass-through payments to third parties, are as follows: | |||||||||||||
Lands’ End Shops at Sears | |||||||||||||
Related party costs charged by Sears Holdings to the Company related to Lands’ End Shops at Sears are as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Rent, CAM and occupancy costs | $ | 26,605 | $ | 28,021 | $ | 29,232 | |||||||
Retail services, store labor | 31,087 | 34,495 | 39,399 | ||||||||||
Supply chain costs | 1,044 | 2,037 | 2,569 | ||||||||||
Financial services and payment processing | 3,034 | 3,353 | 3,261 | ||||||||||
Total expenses | $ | 61,770 | $ | 67,906 | $ | 74,461 | |||||||
Number of Lands’ End Shops at Sears at period end (1) | 236 | 274 | 276 | ||||||||||
(1) During Fiscal 2014 and Fiscal 2013, 38 and two Lands’ End Shops at Sears were closed, respectively. | |||||||||||||
Rent, CAM and Occupancy Costs | |||||||||||||
The Company rents space in store locations owned or leased by Sears Roebuck. The agreements include a cost per square foot for rent, CAM and occupancy costs. The lease terms for the individual store locations generally terminate effective January 31, 2018, 2019, or 2020. | |||||||||||||
Retail Services, Store Labor | |||||||||||||
The Company contracts with Sears Roebuck to provide hourly labor and required systems and tools to service customers in the Lands’ End Shops at Sears. This includes dedicated staff to directly engage with customers and allocated overhead. The dedicated staff undergoes specific Lands’ End brand training. Required tools include point-of-sale, price lookup and labor scheduling systems. | |||||||||||||
Supply Chain Costs | |||||||||||||
The Company contracts with Sears Roebuck to provide logistics, handling, transportation and other services, primarily based upon inventory units processed, to assist in the flow of merchandise from vendors to the Lands’ End Shops at Sears locations. | |||||||||||||
Financial Services and Payment Processing | |||||||||||||
The Company contracts with SHMC to provide retail financing and payment solutions, primarily based upon customer credit card activity, including third-party payment acceptance, credit cards and gift cards. | |||||||||||||
General Corporate Services | |||||||||||||
Related party costs charged by Sears Holdings to the Company for general corporate services are as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Sourcing | $ | 8,986 | $ | 9,805 | $ | 10,118 | |||||||
Shop Your Way Rewards | 4,202 | 8,788 | 4,586 | ||||||||||
Shared services | 559 | 442 | 819 | ||||||||||
Co-location and services | 15 | 26 | 118 | ||||||||||
Total expenses | $ | 13,762 | $ | 19,061 | $ | 15,641 | |||||||
Sourcing | |||||||||||||
The Company contracts with Sears Holdings Global Sourcing, Ltd., a subsidiary of Sears Holdings Corporation, to provide agreed upon buying agency services in foreign territories from where the Company purchases merchandise. These services, primarily based upon quantities purchased, include quality-control functions, regulatory compliance, product claims management and new vendor selection and setup assistance. These amounts are included in Cost of sales in the Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Shop Your Way Rewards | |||||||||||||
The Company contracts with SHMC to participate in Sears Holdings’ SYWR member loyalty program. Customers earn points issued by SHMC on purchases which may be redeemed to pay for future purchases. The Company pays SHMC an agreed-upon fee for points issued in connection with purchases from the Company. Depending on the ratio of points redeemed in Lands’ End formats to points issued in Lands’ End formats in the previous 12 months, the Company generally either pays additional fees or is reimbursed fees by SHMC. For Fiscal 2014, the Company recorded an expense for additional fees payable to SHMC based on the preceding formula. All SYWR member loyalty program expenses are recorded in Cost of sales in the Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
In Fiscal 2013 and Fiscal 2012, under the prior arrangements that governed the Company’s participation in the SYWR member loyalty program, as customers redeemed points on purchases, Sears Holdings reimbursed the Company through a redemption credit. The redemption credit was $10.8 million and $7.9 million for Fiscal 2013 and Fiscal 2012, respectively, and was included in Merchandise sales and services, net in the Combined Statements of Comprehensive Operations. There was no redemption credit recognized in Fiscal 2014. | |||||||||||||
Shared Services | |||||||||||||
The Company contracts with SHMC to provide certain shared corporate services. These shared services include tax services and compliance. | |||||||||||||
Co-Location and Services | |||||||||||||
The Company had contracted with SHMC to host and support certain redundant information technology hardware, software and operations at the Sears Data Center in Troy, Michigan for disaster mitigation and recovery efforts. In July 2014, the Company exited the Sears Data Center and completed the installation of the disaster mitigation and recovery systems at its Dodgeville location. The related contract with SHMC terminated on August 25, 2014. | |||||||||||||
Use of Intellectual Property or Services | |||||||||||||
Related party revenue and costs charged by the Company to and from Sears Holdings for the use of intellectual property or services is as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Call center services | $ | 2,346 | $ | 1,505 | $ | 1,539 | |||||||
Lands' End business outfitters revenue | 1,995 | 1,808 | 130 | ||||||||||
Credit card revenue | 1,519 | 1,276 | 1,329 | ||||||||||
Gift card revenue | 239 | 1,515 | 1,213 | ||||||||||
Royalty income | 79 | 92 | 97 | ||||||||||
Total | $ | 6,178 | $ | 6,196 | $ | 4,308 | |||||||
Call Center Services | |||||||||||||
The Company has entered into a contract with SHMC to provide call center services in support of Sears Holdings’ SYWR member loyalty program. This income is net of agreed upon costs directly attributable for the Company providing these services. The income is included in Merchandise sales and services, net and costs are included in Selling and administrative expenses in the Consolidated and Combined Statements of Comprehensive Operations. Total call center service income included in Merchandise sales and services, net was $8,126, $7,246 and $6,227 in Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Lands' End Business Outfitters Revenue | |||||||||||||
The Company sells store uniforms and other company apparel to Sears Holdings from time to time. Revenue related to these sales is included in Merchandise sales and services, net in the Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Credit Card Revenue | |||||||||||||
The Company has entered into a contract with SHMC to provide credit cards for customer sales transactions. The Company earns revenue based on the dollar volume of merchandise sales and receives a fee based on the generation of new credit card accounts. This income is included in Merchandise sales and services, net in the Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Gift Card Revenue | |||||||||||||
The Company has entered into a contract with SHCP to provide gift cards for use by the Company. The Company offers gift cards for sale on behalf of SHCP and redeems such items on the Company’s internet websites, retail stores and other retail outlets for merchandise. The Company receives a commission fee on the face value for each gift card it sells, and a payment from Sears Holdings for certain Lands' End-branded gift cards that are redeemed by Sears Holdings for non-Lands' End merchandise. The Company pays a transaction/redemption fee to SHCP for each gift card the Company redeems. The income net of associated expenses is included in Merchandise sales and services, net in the Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Royalty Income | |||||||||||||
The Company entered into a licensing agreement with SHMC whereby royalties are paid in consideration for sharing or use of intellectual property. Royalties received under this agreement are included in Merchandise sales and services, net in the Consolidated and Combined Statements of Comprehensive Operations. | |||||||||||||
Additional Balance Sheet Information | |||||||||||||
At January 30, 2015 and January 31, 2014, the Company included $5.7 million and $0 million in Accounts Receivable, net, respectively, and $9.1 million and $0 million in Accounts payable, respectively, in the Consolidated and Combined Balance Sheets to reflect amounts due from and owed to Sears Holdings. At January 30, 2015, a $14.3 million receivable was recorded by the Company in Other assets in the Consolidated and Combined Balance Sheets to reflect the indemnification by Sears Holdings Corporation of the pre-Separation uncertain tax positions (including penalties and interest) for which Sears Holdings Corporation is responsible. There was no such receivable recorded in Other assets at January 31, 2014. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting | SEGMENT REPORTING | ||||||||||||
The Company is a leading multi-channel retailer of casual clothing, accessories and footwear, as well as home products, and has two reportable segments: Direct and Retail. Both segments sell similar products and provide services. Product sales are divided by product categories: Apparel and Non-apparel. The Non-apparel sales include accessories, footwear, and home goods. Services and other revenue includes embroidery, monogramming, gift wrapping, shipping and other services. Merchandise sales and services, net are aggregated by product category in the following table: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Merchandise sales and services, net: | |||||||||||||
Apparel | $ | 1,248,847 | $ | 1,245,670 | $ | 1,269,685 | |||||||
Non-apparel | 220,385 | 226,302 | 224,057 | ||||||||||
Services and other | 86,121 | 90,904 | 92,185 | ||||||||||
Total merchandise sales and services, net | $ | 1,555,353 | $ | 1,562,876 | $ | 1,585,927 | |||||||
The Company identifies reportable segments according to how business activities are managed and evaluated. Each of the Company’s operating segments are reportable segments and are strategic business units that offer similar products and services but are sold either directly from its warehouses (Direct) or through its retail stores (Retail). Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is the primary measure used to make decisions on allocating resources and assessing performance of each operating segment. Adjusted EBITDA is computed as Income before taxes appearing on the Consolidated and Combined Statements of Comprehensive Operations net of interest expense, depreciation and amortization and other significant items that while periodically affecting the Company's results, may vary significantly from period to period and may have a disproportionate effect in a given period, which may affect comparability of results. Reportable segment assets are those directly used in or clearly allocable to an operating segment’s operations. Depreciation, amortization, and property and equipment expenditures are recognized in each respective segment. There were no material transactions between reporting segments for the years ended January 30, 2015, January 31, 2014 and February 1, 2013. | |||||||||||||
• | The Direct segment sells products through the Company’s e-commerce websites and direct mail catalogs. Operating costs consist primarily of direct marketing costs (catalog and e-commerce marketing costs); order processing and shipping costs; direct labor and benefits costs and facility costs. Assets primarily include goodwill and trade name intangible assets, inventory, accounts receivable, prepaid expenses (deferred catalog costs), technology infrastructure, and property and equipment. | ||||||||||||
• | The Retail segment sells products and services through dedicated Lands’ End Shops at Sears across the United States, the Company’s stand-alone Lands’ End Inlet stores and international shop-in-shops. Operating costs consist primarily of labor and benefits costs; rent, CAM and occupancy costs; distribution costs; and in-store marketing costs. Assets primarily include inventory in the retail stores, fixtures and leasehold improvements. | ||||||||||||
Corporate overhead and other expenses include unallocated shared-service costs, which primarily consist of employee services and financial services, legal and corporate expenses. These expenses include labor and benefits costs, corporate headquarters occupancy costs and other administrative expenses. Assets include corporate headquarters and facilities, corporate cash and cash equivalents and deferred income taxes. | |||||||||||||
Financial information by segment is presented as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Merchandise sales and services, net: | |||||||||||||
Direct | $ | 1,320,642 | $ | 1,303,862 | $ | 1,304,009 | |||||||
Retail | 234,632 | 258,922 | 281,821 | ||||||||||
Corporate/ other | 79 | 92 | 97 | ||||||||||
Total merchandise sales and services, net | $ | 1,555,353 | $ | 1,562,876 | $ | 1,585,927 | |||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Adjusted EBITDA: | |||||||||||||
Direct | $ | 192,763 | $ | 166,313 | $ | 141,390 | |||||||
Retail | 7,161 | 4,665 | (5,650 | ) | |||||||||
Corporate/ other | (35,626 | ) | (20,968 | ) | (28,067 | ) | |||||||
Total adjusted EBITDA | $ | 164,298 | $ | 150,010 | $ | 107,673 | |||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Depreciation and amortization: | |||||||||||||
Direct | $ | 15,640 | $ | 16,691 | $ | 17,173 | |||||||
Retail | 2,618 | 3,547 | 4,606 | ||||||||||
Corporate/ other | 1,445 | 1,361 | 1,342 | ||||||||||
Total depreciation and amortization | $ | 19,703 | $ | 21,599 | $ | 23,121 | |||||||
(in thousands) | 30-Jan-15 | 31-Jan-14 | |||||||||||
Total assets: | |||||||||||||
Direct | $ | 1,023,364 | $ | 1,074,018 | |||||||||
Retail | 67,765 | 75,755 | |||||||||||
Corporate/ other | 262,308 | 44,502 | |||||||||||
Total assets | $ | 1,353,437 | $ | 1,194,275 | |||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Capital expenditures: | |||||||||||||
Direct | $ | 15,160 | $ | 9,057 | $ | 14,657 | |||||||
Retail | 1,004 | 260 | 84 | ||||||||||
Corporate/ other | 444 | 570 | 252 | ||||||||||
Total capital expenditures | $ | 16,608 | $ | 9,887 | $ | 14,993 | |||||||
The geographical allocation of Merchandise sales and services, net is based upon country of order fulfillment. Other foreign amounts represent orders fulfilled from the United States and shipped to customers in another country. The following presents summarized geographical information: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Merchandise sales and services, net: | |||||||||||||
United States | $ | 1,309,252 | $ | 1,289,359 | $ | 1,282,803 | |||||||
Europe | 159,796 | 181,129 | 199,548 | ||||||||||
Asia | 56,014 | 54,948 | 59,731 | ||||||||||
Other foreign | 30,291 | 37,440 | 43,845 | ||||||||||
Total merchandise sales and services, net | $ | 1,555,353 | $ | 1,562,876 | $ | 1,585,927 | |||||||
(in thousands) | January 30, 2015 | January 31, 2014 | |||||||||||
Property and equipment, net: | |||||||||||||
United States | $ | 88,300 | $ | 86,085 | |||||||||
Europe | 12,380 | 14,320 | |||||||||||
Asia | 543 | 691 | |||||||||||
Total property and equipment, net | $ | 101,223 | $ | 101,096 | |||||||||
Other than the United States, no one country is greater than 10% of total merchandise sales and services, net or of total property and equipment, net except the United Kingdom, which had total property and equipment, net of $11,826 as of January 30, 2015 and $13,586 as of January 31, 2014 . |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
Legal Proceedings | |
The Company is party to various legal proceedings arising in the ordinary course of business. These actions include commercial, intellectual property, employment, regulatory and consumer fraud claims. Some of these actions involve complex factual and legal issues and are subject to uncertainties. At this time, the Company is not able to either predict the outcome of these legal proceedings or reasonably estimate a potential range of loss with respect to the proceedings. The Company does not believe that the outcome of any current legal proceeding would have a material adverse effect on results of operations, cash flows or financial position taken as a whole. | |
Beginning in 2005, the Company initiated the first of several claims in Iowa County Circuit Court against the City of Dodgeville (the "City") to recover overpaid taxes resulting from the city’s excessive property tax assessment of the Company’s headquarters campus. As of April 7, 2015, the City has refunded, as the result of various court decisions, over $4.0 million in excessive taxes and interest to the Company in the following amounts: (1) approximately $1.6 million arising from the 2005 and 2006 tax years that was recognized in Fiscal 2009; (2) approximately $1.6 million arising from the 2007, 2009 and 2010 tax years, recognized in Fiscal 2013 within Selling and administrative costs in the Consolidated and Combined Statement of Operations; (3) approximately $0.7 million arising from the 2008 tax year, recognized in Fiscal 2014; and (4) an additional $0.2 million also arising from the 2008 tax year, recognized in Fiscal 2014. The claims arising from 2005 and 2006 tax years are closed. The company claims pending before the circuit court arising from tax years 2007 through 2013 remain unresolved, as is the Company's administrative claim for the 2014 tax year which will soon be filed with the circuit court. The Company believes that the potential additional aggregate recovery from the City of Dodgeville arising from the 2007 to 2014 tax years will range from $2.8 million to $4.0 million, none of which has been recorded in the Consolidated and Combined Financial Statements. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | |||||||
Jan. 30, 2015 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Other Current Liabilities | OTHER CURRENT LIABILITIES | |||||||
Other current liabilities consisted of the following: | ||||||||
(in thousands) | 30-Jan-15 | 31-Jan-14 | ||||||
Deferred gift card revenue | $ | 23,025 | $ | 28,819 | ||||
Accrued employee compensation and benefits | 18,778 | 11,811 | ||||||
Reserve for sales returns and allowances | 13,868 | 13,805 | ||||||
Deferred revenue | 11,228 | 15,966 | ||||||
Income taxes payable | 9,559 | — | ||||||
Accrued property, sales and other taxes | 8,194 | 6,262 | ||||||
Short-term portion of long-term debt | 5,150 | — | ||||||
Product recall | 4,406 | — | ||||||
Other | 13,345 | 7,292 | ||||||
Total other current liabilities | $ | 107,553 | $ | 83,955 | ||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||
Jan. 30, 2015 | ||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
(in thousands except share data) | $’s | % Net | $’s | % Net | $’s | % Net | $’s | % Net | ||||||||||||||||||||
Sales | Sales | Sales | Sales | |||||||||||||||||||||||||
Merchandise sales and services, net | $ | 330,483 | 100 | % | $ | 347,222 | 100 | % | $ | 373,082 | 100 | % | $ | 504,566 | 100 | % | ||||||||||||
Gross margin | 162,022 | 49 | % | 168,406 | 48.5 | % | 183,295 | 49.1 | % | 222,208 | 44 | % | ||||||||||||||||
Operating income | 18,794 | 5.7 | % | 25,298 | 7.3 | % | 35,098 | 9.4 | % | 60,453 | 12 | % | ||||||||||||||||
Net income | $ | 10,868 | 3.3 | % | $ | 11,845 | 3.4 | % | $ | 17,991 | 4.8 | % | $ | 33,095 | 6.6 | % | ||||||||||||
Basic earnings per common share | $ | 0.34 | $ | 0.37 | $ | 0.56 | $ | 1.04 | ||||||||||||||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.37 | $ | 0.56 | $ | 1.03 | ||||||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
(in thousands except share data) | $’s | Net | $’s | Net | $’s | Net | $’s | Net | ||||||||||||||||||||
Sales | Sales | Sales | Sales | |||||||||||||||||||||||||
Merchandise sales and services, net | $ | 319,035 | 100 | % | $ | 329,561 | 100 | % | $ | 383,852 | 100 | % | $ | 530,428 | 100 | % | ||||||||||||
Gross margin | 154,588 | 48.5 | % | 149,674 | 45.4 | % | 174,450 | 45.4 | % | 231,625 | 43.7 | % | ||||||||||||||||
Operating income | 11,960 | 3.7 | % | 18,386 | 5.6 | % | 23,271 | 6.1 | % | 74,724 | 14.1 | % | ||||||||||||||||
Net income | $ | 7,336 | 2.3 | % | $ | 11,289 | 3.4 | % | $ | 14,279 | 3.7 | % | $ | 45,943 | 8.7 | % | ||||||||||||
Basic and diluted earnings per common share(1)(2) | $ | 0.23 | $ | 0.35 | $ | 0.45 | $ | 1.44 | ||||||||||||||||||||
-1 | For periods ended April 4, 2014 and prior, basic earnings per share are computed using 31,956,521, the number of shares of Lands’ End common stock outstanding on April 4, 2014, the date on which the Lands’ End common stock was distributed to the stockholders of Sears Holdings Corporation. The same number of shares was used to calculate basic and diluted earnings per share for Fiscal 2013 as there were no dilutive securities during these periods. | |||||||||||||||||||||||||||
-2 | The sum of the quarterly earnings per share—basic and diluted amounts may not equal the fiscal year amount due to rounding. |
Subsequent_Event
Subsequent Event | 12 Months Ended | ||
Jan. 30, 2015 | |||
Subsequent Events [Abstract] | |||
Subsequent Event | SUBSEQUENT EVENT | ||
On March 24, 2015 Lands' End announced a recall of selected styles of children's sleepwear that did not meet the federal flammability standard. All potentially affected styles were sold exclusively through our children’s catalogs, www.landsend.com in the United States and various websites in Europe from January 2014 through February 2015. The impacts of the sleepwear recall recorded in Fiscal 2014 are as follows: | |||
(in thousands) | increase/(decrease) | ||
Merchandise sales and services, net | (3,427 | ) | |
Cost of sales | (1,725 | ) | |
Other operating expense | 3,011 | ||
Operating income | (4,713 | ) | |
Income tax expense | (1,869 | ) | |
Net income | (2,844 | ) | |
There will be additional costs related to this recall in Fiscal 2015, but we do not believe that theses costs will be material. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Jan. 30, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Basis of Presentation | Basis of Presentation | |||||||
The financial statements presented herein represent (i) periods prior to April 4, 2014 when Lands' End was a wholly owned subsidiary of Sears Holdings Corporation (referred to as “Combined Financial Statements”) and (ii) the period as of and subsequent to April 4, 2014 when Lands' End became a separate publicly-traded company (referred to as “Consolidated Financial Statements”). | ||||||||
The Consolidated Financial Statements include the accounts of Lands' End, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. | ||||||||
The accompanying Consolidated and Combined Financial Statements have been prepared in accordance with GAAP. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. | ||||||||
Our historical Combined Financial Statements have been prepared on a stand-alone basis and have been derived from the consolidated financial statements and accounting records of Sears Holdings. The Combined Financial Statements include Lands’ End, Inc. and subsidiaries and certain other items related to the Lands’ End business which were held by Sears Holdings prior to the Separation. These items were contributed by Sears Holdings to Lands’ End, Inc. prior to the Separation. These historical Combined Financial Statements reflect the Company's financial position, results of operations and cash flows in conformity with GAAP. | ||||||||
Use of Estimates | Use of Estimates | |||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reportable amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Cash and cash equivalents | Cash and cash equivalents | |||||||
The Company includes deposits in-transit from banks for payments related to third-party credit card and debit card transactions within cash. | ||||||||
Restricted cash | Restricted cash | |||||||
The Company classifies cash balances pledged as collateral for an employee benefit trust fund as Restricted cash on the Consolidated and Combined Balance Sheets. | ||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||||||
The Company provides an allowance for doubtful accounts based on both historical experience and specific identification. | ||||||||
Inventory | Inventory | |||||||
Inventories primarily consist of merchandise purchased for resale. For financial reporting and tax purposes, the Company’s United States inventory, primarily merchandise held for sale, is stated at last-in, first-out (“LIFO”) cost, which is lower than market. The Company accounts for its non-United States inventory on the first-in, first-out (“FIFO”) method. | ||||||||
Deferred Catalog Costs and Marketing | Deferred Catalog Costs and Marketing | |||||||
Costs incurred for direct response marketing consist primarily of catalog production and mailing costs that are generally amortized within two months from the date catalogs are mailed. | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment are recorded at cost, less accumulated depreciation. Additions and substantial improvements are capitalized and include expenditures that materially extend the useful lives of existing facilities and equipment. Maintenance and repairs that do not materially improve or extend the lives of the respective assets are expensed as incurred. As of the balance sheet dates, Property and equipment, net consisted of the following: | ||||||||
(in thousands) | Asset Lives | 30-Jan-15 | 31-Jan-14 | |||||
Land | — | 3,529 | 3,563 | |||||
Buildings and improvements | 15-30 | 100,583 | 101,249 | |||||
Furniture, fixtures and equipment | 10-Mar | 76,938 | 75,625 | |||||
Computer hardware and software | 5-Mar | 73,062 | 65,810 | |||||
Leasehold improvements | 7-Mar | 12,781 | 12,517 | |||||
Gross property and equipment | 266,893 | 258,764 | ||||||
Accumulated depreciation | (165,670 | ) | (157,668 | ) | ||||
Total property and equipment, net | 101,223 | 101,096 | ||||||
Depreciation expense is recorded over the estimated useful lives of the respective assets using the straight-line method. Leasehold improvements are depreciated over the shorter of the associated lease term or the estimated useful life of the asset. | ||||||||
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | |||||||
Long-lived assets, including property and equipment and finite-lived intangible assets (customer lists) are subject to a review for impairment if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future undiscounted cash flows generated by an asset or asset group is less than its carrying amount, the Company then determines the fair value of the asset generally by using a discounted cash flow model. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value as determined based on quoted market prices or through the use of other valuation techniques. | ||||||||
Goodwill and Intangible Asset Impairment Assessments | Goodwill and Intangible Asset Impairment Assessments | |||||||
Goodwill, trade name and other intangible assets are tested separately for impairment on an annual basis, or are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The majority of the Company's goodwill and intangible assets relate to Kmart Holding Corporation’s acquisition of Sears Roebuck in March 2005. The calculation for an impairment loss compares the carrying value of the asset to that asset’s estimated fair value, which may be based on estimated future discounted cash flows or quoted market prices. Lands' End recognizes an impairment loss if the asset’s carrying value exceeds its estimated fair value. | ||||||||
Frequently the Company's impairment loss calculations contain multiple uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including forecasting cash flows under different scenarios. Lands' End performs annual goodwill and indefinite-lived intangible asset impairment tests on the last day of the Company's November accounting period each year and updates the tests between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit or indefinite-lived intangible asset below its carrying amount. However, if actual results are not consistent with the Company's estimates and assumptions used in estimating future cash flows and asset fair values, the Company may be exposed to losses that could be material. | ||||||||
Goodwill impairment assessments. The Company's goodwill resides in the Direct reporting unit. The goodwill impairment test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. Lands' End estimates fair value using the best information available, using both a market approach, as well as a discounted cash flow model, commonly referred to as the income approach. The market approach determines a value of the reporting unit by deriving market multiples for the reporting unit based on assumptions potential market participants would use in establishing a bid price for the reporting unit. This approach therefore assumes strategic initiatives will result in improvements in operational performance in the event of purchase, and includes the application of a discount rate based on market participant assumptions with respect to capital structure and access to capital markets. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects current market conditions appropriate to the Company's reporting unit. The projection uses management’s best estimates of economic and market conditions over the projected period, including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. The Company's final estimate of the fair value of the reporting unit is developed by weighting the fair values determined through both the market participant and income approaches, where comparable market participant information is available. | ||||||||
If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporting unit was being acquired in a business combination. Specifically, the Company allocates the fair value to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, the Company records an impairment charge for the difference. | ||||||||
During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the fair value of the reporting unit exceeded the carrying value and, as such, the Company did not record any goodwill impairment charges. | ||||||||
Indefinite-lived intangible asset impairment assessments. Lands' End reviews the Company's indefinite-lived intangible asset, the Lands’ End trade name, for impairment by comparing the carrying amount of the asset to the sum of undiscounted cash flows expected to be generated by the asset. The Company considers the income approach when testing the intangible asset with indefinite life for impairment on an annual basis. Lands' End determined that the income approach, specifically the relief from royalty method, was most appropriate for analyzing the Company's indefinite-lived asset. This method is based on the assumption that, in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset class. The relief from royalty method involves two steps: (1) estimation of reasonable royalty rates for the assets and (2) the application of these royalty rates to a net sales stream and discounting the resulting cash flows to determine a value. The Company multiplied the selected royalty rate by the forecasted net sales stream to calculate the cost savings (relief from royalty payment) associated with the asset. The cash flows are then discounted to present value by the selected discount rate and compared to the carrying value of the asset. | ||||||||
During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the fair value of the indefinite-lived intangible asset exceeded its carrying value and, as such, the Company did not record any intangible asset impairment charges. | ||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||
The Company determines the fair value of financial instruments in accordance with accounting standards pertaining to fair value measurements. Such standards define fair value and establish a framework for measuring fair value in accordance with GAAP. Under fair value measurement accounting standards, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The Company reports the fair value of financial assets and liabilities based on the fair value hierarchy prescribed by accounting standards for fair value measurements, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. | ||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. Total accounts receivable were $30.1 million and $33.6 million as of January 30, 2015 and January 31, 2014, respectively. Bad debt expense was $0.4 million and $0.5 million in Fiscal 2014 and Fiscal 2013, respectively. At January 30, 2015 accounts receivable included $5.7 million due from Sears Holdings. | ||||||||
Cash and cash equivalents, Accounts receivable, Accounts payable and Other current liabilities are reflected in the Consolidated and Combined Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. | ||||||||
Long-term debt is reflected in the Consolidated and Combined Balance Sheets at amortized cost. The fair value of debt was determined utilizing level 2 valuation techniques based on the closing inactive market bid price on January 30, 2015. See Note 8—Fair Value of Financial Assets and Liabilities. | ||||||||
Foreign Currency Translations and Transactions | Foreign Currency Translations and Transactions | |||||||
The Company translates the assets and liabilities of foreign subsidiaries from their respective functional currencies to United States dollars at the appropriate spot rates as of the balance sheet date. Revenue and expenses of operations are translated to United States dollars using weighted average exchange rates during the year. The foreign subsidiaries use the local currency as their functional currency. The effects of foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss in the accompanying Consolidated and Combined Statements of Changes in Stockholders' Equity. | ||||||||
Revenue Recognition | Revenue Recognition | |||||||
Revenues include sales of merchandise and delivery revenues related to merchandise sold. Revenue is recognized for the Direct segment when the merchandise is expected to be received by the customer and for the Retail segment at the time of sale in the store. | ||||||||
Revenues from merchandise sales and services are reported net of estimated returns and allowances and exclude sales taxes. Estimated returns and allowances are recorded as a reduction of sales and cost of sales. The reserve for sales returns and allowances is calculated based on historical experience and future expectations and is included in Other current liabilities on the Consolidated and Combined Balance Sheets. | ||||||||
Cost of Sales | Cost of Sales | |||||||
Cost of sales are comprised principally of the costs of merchandise, in-bound freight, duty, warehousing and distribution (including receiving, picking, packing, store delivery and value added costs), customer shipping and handling costs and physical inventory losses. Depreciation and amortization is not included in the Company's cost of sales. | ||||||||
The Company participates in Sears Holdings’ Shop Your Way Rewards member loyalty program. The expenses for this program are recorded in Cost of sales, as described in Note 10—Related Party Agreements and Transactions. | ||||||||
Selling and Administrative Expenses | Selling and Administrative Expenses | |||||||
Selling and administrative expenses are comprised principally of payroll and benefits costs for direct, retail and corporate employees, marketing, occupancy costs of retail stores and corporate facilities, buying, pre-opening costs and other administrative expenses. All stock-based compensation is recorded in Selling and administrative expenses | ||||||||
Other Operating Expense | Other Operating Expense | |||||||
Other operating expense in Fiscal 2014 consisted primarily of $3.0 million in costs associated with a recall of selected styles of children's sleepwear that did not meet the federal flammability standard. | ||||||||
Income Taxes | Income Taxes | |||||||
Deferred income tax assets and liabilities are based on the estimated future tax effects of differences between the financial and tax basis of assets and liabilities based on currently enacted tax laws. The tax balances and income tax expense recognized are based on management’s interpretation of the tax laws of multiple jurisdictions. Income tax expense also reflects best estimates and assumptions regarding, among other things, the level of future taxable income and tax planning. Future changes in tax laws, changes in projected levels of taxable income, tax planning and adoption and implementation of new accounting standards could impact the effective tax rate and tax balances recorded. | ||||||||
For purposes of the Combined Financial Statements, the tax provision represents the tax attributable to these operations as if the Company were required to file a separate tax return. Sears Holdings paid all United States federal, state and local taxes attributable to the Lands’ End business prior to the Separation and the related taxes payable and tax payments are reflected directly in Net parent company investment in the Combined Balance Sheets. Prior to the Separation taxes paid by Lands' End only represent taxes for its wholly owned foreign subsidiaries. Following the Separation, Lands' End is responsible for all taxes due. Taxes paid by Lands' End were $19.8 million, $4.1 million and $5.3 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | ||||||||
Lands’ End and Sears Holdings Corporation entered into the Tax Sharing Agreement in connection with the Separation which governs Sears Holdings Corporation’s and Lands’ End’s respective rights, responsibilities and obligations after the Separation with respect to liabilities for United States federal, state, local and foreign taxes attributable to the Lands’ End business. In addition to the allocation of tax liabilities, the Tax Sharing Agreement addresses the preparation and filing of tax returns for such taxes and dispute resolution with taxing authorities regarding such taxes. Generally, Sears Holdings Corporation is liable for all pre-Separation United States federal, state and local income taxes. Lands’ End generally is liable for all other taxes attributable to its business, including all foreign income taxes. | ||||||||
Tax positions are recognized when they are more likely than not to be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is more likely than not to be realized upon settlement. The Company is subject to periodic audits by the United States Internal Revenue Service and other state and local taxing authorities. These audits may challenge certain of the Company’s tax positions such as the timing and amount of income and deductions and the allocation of taxable income to various tax jurisdictions. The Company evaluates its tax positions and establishes liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes. These tax uncertainties are reviewed as facts and circumstances change and are adjusted accordingly. This requires significant management judgment in estimating final outcomes. Interest and penalties are classified as Income tax expense in the Consolidated and Combined Statements of Comprehensive Operations. See Note 3—Income Taxes. | ||||||||
Self-Insurance | Self-Insurance | |||||||
The Company has a self-insured plan for health and welfare benefits and provides an accrual to cover the obligation. The accrual for the self-insured liability is based on claims filed and an estimate of claims incurred but not yet reported. The Company considers a number of factors, including historical claims information, when determining the amount of the accrual. Costs related to the administration of the plan and related claims are expensed as incurred. | ||||||||
Postretirement Benefit Plan | Postretirement Benefit Plan | |||||||
Effective January 1, 2006, the Company decided to indefinitely suspend eligibility to the postretirement medical plan for future company retirees. In addition, the Company elected to immediately recognize all existing net actuarial losses and prior service costs. | ||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) | |||||||
Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders, and is comprised solely of foreign currency translation adjustments and net income. | ||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||
Stock-based compensation expense for restricted stock units is determined based on the grant date fair value. The fair value is determined based on the Company's stock price on the date of the grant. The Company recognizes stock-based compensation cost net of estimated forfeitures and revises the estimates in subsequent periods if actual forfeitures differ from the estimates. The Company estimates the forfeiture rate based on historical data as well as expected future behavior. Stock-based compensation is recorded in Selling and administrative expense in the Consolidated and Combined Statements of Comprehensive Operations over the period in which the employee is required to provide service in exchange for the restricted stock units. | ||||||||
Earnings per Share | Earnings per Share | |||||||
The numerator for both basic and diluted EPS is net income attributable to Lands’ End. The denominator for basic EPS is based upon the number of weighted average shares of Lands’ End common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of Lands’ End common stock and common stock equivalents outstanding during the reporting periods using the treasury stock method in accordance with the FASB ASC. For periods ended April 4, 2014 and prior, basic EPS is computed using the number of shares of Lands’ End common stock outstanding on April 4, 2014, the date on which the Lands’ End common stock was distributed to the stockholders of Sears Holdings Corporation. | ||||||||
New Accounting Pronouncements | New Accounting Pronouncements | |||||||
Revenue from Contracts with Customers | ||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for Lands' End in the first quarter of its fiscal year ending February 2, 2018. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's Consolidated and Combined Financial Statements. | ||||||||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||||||||
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which modifies the requirements for disposals to qualify as discontinued operations and expands related disclosure requirements. This guidance will be effective for Lands' End in its fiscal year ending January 29, 2016. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated and Combined Financial Statements. | ||||||||
Simplifying the Presentation of Debt Issuance Costs | ||||||||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the required presentation of debt issuance costs from an asset on the balance sheet to a deduction from the related debt liability. This guidance will be effective for Lands' End in its fiscal year ending January 27, 2017. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated and Combined Financial Statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of allowance for doubtful accounts | Changes in the balance of the allowance for doubtful accounts are as follows for the following years: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Beginning balance | $ | 1,031 | $ | 1,316 | $ | 1,293 | |||||||
Provision | 371 | 444 | 721 | ||||||||||
Write-offs | (714 | ) | (729 | ) | (698 | ) | |||||||
Ending balance | $ | 688 | $ | 1,031 | $ | 1,316 | |||||||
Summary of property and equipment, net | Property and equipment, net consisted of the following: | ||||||||||||
(in thousands) | Asset Lives | 30-Jan-15 | 31-Jan-14 | ||||||||||
Land | — | 3,529 | 3,563 | ||||||||||
Buildings and improvements | 15-30 | 100,583 | 101,249 | ||||||||||
Furniture, fixtures and equipment | 10-Mar | 76,938 | 75,625 | ||||||||||
Computer hardware and software | 5-Mar | 73,062 | 65,810 | ||||||||||
Leasehold improvements | 7-Mar | 12,781 | 12,517 | ||||||||||
Gross property and equipment | 266,893 | 258,764 | |||||||||||
Accumulated depreciation | (165,670 | ) | (157,668 | ) | |||||||||
Total property and equipment, net | 101,223 | 101,096 | |||||||||||
Schedule of sales returns and allowances reserve | Reserves for sales returns and allowances consisted of the following: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Beginning balance | $ | 13,805 | $ | 13,524 | $ | 14,607 | |||||||
Provision | 187,000 | 211,505 | 231,817 | ||||||||||
Write-offs | (186,937 | ) | (211,224 | ) | (232,900 | ) | |||||||
Ending balance | $ | 13,868 | $ | 13,805 | $ | 13,524 | |||||||
Schedule of accumulated other comprehensive income (loss) | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Beginning balance: Accumulated other comprehensive loss (net of tax of $1,211, $1,938 and $942, respectively) | $ | (1,995 | ) | $ | (3,161 | ) | $ | (1,538 | ) | ||||
Other comprehensive income (loss) | |||||||||||||
Foreign currency translation adjustments (net of tax (expense) benefit of $2,720, $(727), and $996, respectively) | (5,303 | ) | 1,166 | (1,623 | ) | ||||||||
Ending balance: Accumulated other comprehensive loss (net of tax of $3,931, $1,211, and $1,938, respectively) | $ | (7,298 | ) | $ | (1,995 | ) | $ | (3,161 | ) | ||||
Schedule of earnings per share, basic and diluted | The following table summarizes the components of basic and diluted EPS: | ||||||||||||
(in thousands, except per share amounts) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Net income | $ | 73,799 | $ | 78,847 | $ | 49,827 | |||||||
Basic weighted average shares outstanding | 31,957 | 31,957 | 31,957 | ||||||||||
Dilutive effect of stock awards | 59 | — | — | ||||||||||
Diluted weighted average shares outstanding | 32,016 | 31,957 | 31,957 | ||||||||||
Basic earnings per share | $ | 2.31 | $ | 2.47 | $ | 1.56 | |||||||
Diluted earnings per share | $ | 2.31 | $ | 2.47 | $ | 1.56 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 30, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of income before income taxes | The Company’s income before income taxes in the United States and in foreign jurisdictions is as follows: | |||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Income before income taxes: | ||||||||||||
United States | $ | 114,772 | $ | 117,318 | $ | 65,131 | ||||||
Foreign | 5,785 | 11,073 | 16,939 | |||||||||
Total income before income taxes | $ | 120,557 | $ | 128,391 | $ | 82,070 | ||||||
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows: | |||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
United States | $ | 44,503 | $ | 46,272 | $ | 27,645 | ||||||
Foreign | 2,255 | 3,272 | 4,598 | |||||||||
Total provision | $ | 46,758 | $ | 49,544 | $ | 32,243 | ||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 20,902 | $ | 46,355 | $ | 18,892 | ||||||
State | 6,361 | 5,631 | 5,678 | |||||||||
Foreign | 1,950 | 2,519 | 4,607 | |||||||||
Total current | 29,213 | 54,505 | 29,177 | |||||||||
Deferred: | ||||||||||||
Federal | 14,579 | (4,238 | ) | 3,725 | ||||||||
State | 2,661 | (426 | ) | (650 | ) | |||||||
Foreign | 305 | (297 | ) | (9 | ) | |||||||
Total deferred | 17,545 | (4,961 | ) | 3,066 | ||||||||
Total provision | $ | 46,758 | $ | 49,544 | $ | 32,243 | ||||||
Reconciliation of the effective income tax rate | A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: | |||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Tax at statutory federal tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 2.9 | % | 2.6 | % | 4 | % | ||||||
Other, net | 0.9 | % | 1 | % | 0.3 | % | ||||||
Total | 38.8 | % | 38.6 | % | 39.3 | % | ||||||
Summary of deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following: | |||||||||||
(in thousands) | January 30, | January 31, | ||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | $ | 7,894 | $ | 4,144 | ||||||||
Credit carryforwards | 5,964 | — | ||||||||||
Product recall and other reserves | 5,253 | — | ||||||||||
Deferred compensation | 4,823 | — | ||||||||||
Reserve for returns | 4,695 | 4,376 | ||||||||||
Benefit plans | — | 1,734 | ||||||||||
Inventory | 4,822 | 5,631 | ||||||||||
Property and equipment | 153 | 1,233 | ||||||||||
Insurance reserves | 827 | 945 | ||||||||||
Other | 10,469 | 8,323 | ||||||||||
Total deferred tax assets | 44,900 | 26,386 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | 197,786 | 197,680 | ||||||||||
LIFO reserve | 19,864 | 17,924 | ||||||||||
Unremitted foreign earnings | 4,782 | 4,178 | ||||||||||
Catalog marketing | 3,474 | 3,280 | ||||||||||
Other | 39 | 2,877 | ||||||||||
Total deferred tax liabilities | 225,945 | 225,939 | ||||||||||
Net deferred tax liability | 181,045 | 199,553 | ||||||||||
Less current deferred tax (asset) liability | (3,438 | ) | 4,019 | |||||||||
Long-term deferred tax liability | $ | 184,483 | $ | 195,534 | ||||||||
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs for the fiscal years is as follows: | |||||||||||
Federal, State and Foreign Tax | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||
Gross UTB balance at beginning of period | $ | 8,718 | $ | 8,507 | $ | 8,209 | ||||||
Tax positions related to the current period—gross increases | 364 | 252 | 298 | |||||||||
Tax positions related to the prior periods—gross decreases | — | (41 | ) | — | ||||||||
Settlements | — | — | — | |||||||||
Lapse of statutes of limitations | — | — | — | |||||||||
Gross UTB balance at end of period | $ | 9,082 | $ | 8,718 | $ | 8,507 | ||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Jan. 30, 2015 | ||||
Leases [Abstract] | ||||
Summary of future operating lease commitments | Total future commitments under these operating leases (primarily leased Lands’ End Shops at Sears space at Sears Holdings locations as described in Note 10—Related Party Agreements and Transactions) as of January 30, 2015 are as follows for the years ending (in thousands): | |||
2015 | $ | 29,123 | ||
2016 | 27,380 | |||
2017 | 26,516 | |||
2018 | 18,365 | |||
2019 | 11,709 | |||
Thereafter | 5,356 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||
Jan. 30, 2015 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Schedule of stock-based compensation expense | The following table summarizes the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Consolidated and Combined Statements of Comprehensive Income: | ||||||
(in thousands) | Fiscal 2014 | ||||||
Performance Awards | $ | 1,883 | |||||
Deferred Awards | 235 | ||||||
Total stock-based compensation expense | $ | 2,118 | |||||
Summary of deferred award activity | Deferred Awards | ||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
(in thousands) | |||||||
Unvested Deferred Awards, beginning of period | — | $ | — | ||||
Granted | 47 | 27.86 | |||||
Forfeited | (3 | ) | 27.58 | ||||
Unvested Deferred Awards, end of period | 44 | 28.01 | |||||
Summary of performance share award activity | Performance Awards | ||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
(in thousands) | |||||||
Unvested Performance Awards, beginning of period | — | $ | — | ||||
Granted | 304 | 27.56 | |||||
Forfeited | (107 | ) | 26.73 | ||||
Unvested Performance Awards, end of period | 197 | 28.01 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||
Jan. 30, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of aggregate scheduled maturities | The Company’s aggregate scheduled maturities of the Term Loan Facility as of January 30, 2015 are as follows: | ||||
(in thousands) | |||||
Less than 1 year | $ | 5,150 | |||
1 - 2 years | 5,150 | ||||
2 - 3 years | 5,150 | ||||
3 - 4 years | 5,150 | ||||
4 - 5 years | 5,150 | ||||
Thereafter | 485,388 | ||||
$ | 511,138 | ||||
Postretirement_Benefits_and_Re1
Postretirement Benefits and Retirement Plan (Tables) | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||
Schedule of the change in benefit obligation | The following table presents the change in the benefit obligation: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | |||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 1,541 | $ | 1,678 | |||||||||
Transfer to Sears Holdings | (1,526 | ) | — | ||||||||||
Interest cost | 12 | 58 | |||||||||||
Plan participants’ contributions | — | 18 | |||||||||||
Actuarial gain | (27 | ) | (103 | ) | |||||||||
Benefits paid | — | (110 | ) | ||||||||||
Benefit obligation at end of year, net amount recognized | $ | — | $ | 1,541 | |||||||||
Change in plan assets at fair value: | |||||||||||||
Employer contributions | $ | — | $ | 92 | |||||||||
Plan participants’ contributions | — | 18 | |||||||||||
Benefits paid | — | (110 | ) | ||||||||||
Plan assets at end of year | $ | — | $ | — | |||||||||
Summary of net periodic benefit (income) components | The components of net periodic benefit (income) cost are as follows: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Interest cost | $ | 12 | $ | 58 | $ | 70 | |||||||
Recognized net actuarial (gain) loss | (27 | ) | (103 | ) | 29 | ||||||||
Total postretirement benefit (income) cost | $ | (15 | ) | $ | (45 | ) | $ | 99 | |||||
Weighted-average assumption at end of year: | |||||||||||||
Discount rate | N/A | 4 | % | 4.2 | % | ||||||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended | ||||||||
Jan. 30, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Schedule of other financial assets and liabilities measured at fair value | Carrying values and fair values of other financial instruments in the Consolidated and Combined Balance Sheets are as follows: | ||||||||
January 30, 2015 | |||||||||
(in thousands) | Carrying | Fair | |||||||
Amount | Value | ||||||||
Long-term debt, including short-term portion | $ | 511,138 | $ | 491,331 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||
Jan. 30, 2015 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Schedule of goodwill and intangible assets | The following summarizes goodwill and intangible assets: | ||||||||||||||||||
January 30, 2015 | January 31, 2014 | ||||||||||||||||||
(in thousands) | Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||
Customer lists | 10 | $ | 26,300 | $ | 25,888 | $ | 26,300 | $ | 23,258 | ||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||
Trade names | 528,300 | — | 528,300 | — | |||||||||||||||
Gross intangible assets | $ | 554,600 | $ | 25,888 | $ | 554,600 | $ | 23,258 | |||||||||||
Total intangible assets, net | $ | 528,712 | $ | 531,342 | |||||||||||||||
Goodwill | $ | 110,000 | $ | 110,000 | |||||||||||||||
Annual Amortization Expense (in thousands) | |||||||||||||||||||
Fiscal 2014 | $ | 2,630 | |||||||||||||||||
Fiscal 2013 | 2,630 | ||||||||||||||||||
Fiscal 2012 | 2,630 | ||||||||||||||||||
Schedule of estimated future amortization expense | |||||||||||||||||||
Estimated Future Amortization Expense (in thousands) | |||||||||||||||||||
Fiscal 2015 | $ | 412 | |||||||||||||||||
Related_Party_Agreements_and_T1
Related Party Agreements and Transactions (Tables) | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Schedule of related party revenue and costs | Related party costs charged by Sears Holdings to the Company related to Lands’ End Shops at Sears are as follows: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Rent, CAM and occupancy costs | $ | 26,605 | $ | 28,021 | $ | 29,232 | |||||||
Retail services, store labor | 31,087 | 34,495 | 39,399 | ||||||||||
Supply chain costs | 1,044 | 2,037 | 2,569 | ||||||||||
Financial services and payment processing | 3,034 | 3,353 | 3,261 | ||||||||||
Total expenses | $ | 61,770 | $ | 67,906 | $ | 74,461 | |||||||
Number of Lands’ End Shops at Sears at period end (1) | 236 | 274 | 276 | ||||||||||
(1) During Fiscal 2014 and Fiscal 2013, 38 and two Lands’ End Shops at Sears were closed, respectively. | |||||||||||||
Related party revenue and costs charged by the Company to and from Sears Holdings for the use of intellectual property or services is as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Call center services | $ | 2,346 | $ | 1,505 | $ | 1,539 | |||||||
Lands' End business outfitters revenue | 1,995 | 1,808 | 130 | ||||||||||
Credit card revenue | 1,519 | 1,276 | 1,329 | ||||||||||
Gift card revenue | 239 | 1,515 | 1,213 | ||||||||||
Royalty income | 79 | 92 | 97 | ||||||||||
Total | $ | 6,178 | $ | 6,196 | $ | 4,308 | |||||||
Related party costs charged by Sears Holdings to the Company for general corporate services are as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Sourcing | $ | 8,986 | $ | 9,805 | $ | 10,118 | |||||||
Shop Your Way Rewards | 4,202 | 8,788 | 4,586 | ||||||||||
Shared services | 559 | 442 | 819 | ||||||||||
Co-location and services | 15 | 26 | 118 | ||||||||||
Total expenses | $ | 13,762 | $ | 19,061 | $ | 15,641 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Jan. 30, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of financial information by segment | Merchandise sales and services, net are aggregated by product category in the following table: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Merchandise sales and services, net: | |||||||||||||
Apparel | $ | 1,248,847 | $ | 1,245,670 | $ | 1,269,685 | |||||||
Non-apparel | 220,385 | 226,302 | 224,057 | ||||||||||
Services and other | 86,121 | 90,904 | 92,185 | ||||||||||
Total merchandise sales and services, net | $ | 1,555,353 | $ | 1,562,876 | $ | 1,585,927 | |||||||
Financial information by segment is presented as follows: | |||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Merchandise sales and services, net: | |||||||||||||
Direct | $ | 1,320,642 | $ | 1,303,862 | $ | 1,304,009 | |||||||
Retail | 234,632 | 258,922 | 281,821 | ||||||||||
Corporate/ other | 79 | 92 | 97 | ||||||||||
Total merchandise sales and services, net | $ | 1,555,353 | $ | 1,562,876 | $ | 1,585,927 | |||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Adjusted EBITDA: | |||||||||||||
Direct | $ | 192,763 | $ | 166,313 | $ | 141,390 | |||||||
Retail | 7,161 | 4,665 | (5,650 | ) | |||||||||
Corporate/ other | (35,626 | ) | (20,968 | ) | (28,067 | ) | |||||||
Total adjusted EBITDA | $ | 164,298 | $ | 150,010 | $ | 107,673 | |||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Depreciation and amortization: | |||||||||||||
Direct | $ | 15,640 | $ | 16,691 | $ | 17,173 | |||||||
Retail | 2,618 | 3,547 | 4,606 | ||||||||||
Corporate/ other | 1,445 | 1,361 | 1,342 | ||||||||||
Total depreciation and amortization | $ | 19,703 | $ | 21,599 | $ | 23,121 | |||||||
(in thousands) | 30-Jan-15 | 31-Jan-14 | |||||||||||
Total assets: | |||||||||||||
Direct | $ | 1,023,364 | $ | 1,074,018 | |||||||||
Retail | 67,765 | 75,755 | |||||||||||
Corporate/ other | 262,308 | 44,502 | |||||||||||
Total assets | $ | 1,353,437 | $ | 1,194,275 | |||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Capital expenditures: | |||||||||||||
Direct | $ | 15,160 | $ | 9,057 | $ | 14,657 | |||||||
Retail | 1,004 | 260 | 84 | ||||||||||
Corporate/ other | 444 | 570 | 252 | ||||||||||
Total capital expenditures | $ | 16,608 | $ | 9,887 | $ | 14,993 | |||||||
Summary of revenues based by geographic region | The following presents summarized geographical information: | ||||||||||||
(in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||
Merchandise sales and services, net: | |||||||||||||
United States | $ | 1,309,252 | $ | 1,289,359 | $ | 1,282,803 | |||||||
Europe | 159,796 | 181,129 | 199,548 | ||||||||||
Asia | 56,014 | 54,948 | 59,731 | ||||||||||
Other foreign | 30,291 | 37,440 | 43,845 | ||||||||||
Total merchandise sales and services, net | $ | 1,555,353 | $ | 1,562,876 | $ | 1,585,927 | |||||||
Summary of property and equipment by geographic region | |||||||||||||
(in thousands) | January 30, 2015 | January 31, 2014 | |||||||||||
Property and equipment, net: | |||||||||||||
United States | $ | 88,300 | $ | 86,085 | |||||||||
Europe | 12,380 | 14,320 | |||||||||||
Asia | 543 | 691 | |||||||||||
Total property and equipment, net | $ | 101,223 | $ | 101,096 | |||||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Jan. 30, 2015 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Summary of other current liabilities | Other current liabilities consisted of the following: | |||||||
(in thousands) | 30-Jan-15 | 31-Jan-14 | ||||||
Deferred gift card revenue | $ | 23,025 | $ | 28,819 | ||||
Accrued employee compensation and benefits | 18,778 | 11,811 | ||||||
Reserve for sales returns and allowances | 13,868 | 13,805 | ||||||
Deferred revenue | 11,228 | 15,966 | ||||||
Income taxes payable | 9,559 | — | ||||||
Accrued property, sales and other taxes | 8,194 | 6,262 | ||||||
Short-term portion of long-term debt | 5,150 | — | ||||||
Product recall | 4,406 | — | ||||||
Other | 13,345 | 7,292 | ||||||
Total other current liabilities | $ | 107,553 | $ | 83,955 | ||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Jan. 30, 2015 | ||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||
Schedule of quarterly financial data | ||||||||||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
(in thousands except share data) | $’s | % Net | $’s | % Net | $’s | % Net | $’s | % Net | ||||||||||||||||||||
Sales | Sales | Sales | Sales | |||||||||||||||||||||||||
Merchandise sales and services, net | $ | 330,483 | 100 | % | $ | 347,222 | 100 | % | $ | 373,082 | 100 | % | $ | 504,566 | 100 | % | ||||||||||||
Gross margin | 162,022 | 49 | % | 168,406 | 48.5 | % | 183,295 | 49.1 | % | 222,208 | 44 | % | ||||||||||||||||
Operating income | 18,794 | 5.7 | % | 25,298 | 7.3 | % | 35,098 | 9.4 | % | 60,453 | 12 | % | ||||||||||||||||
Net income | $ | 10,868 | 3.3 | % | $ | 11,845 | 3.4 | % | $ | 17,991 | 4.8 | % | $ | 33,095 | 6.6 | % | ||||||||||||
Basic earnings per common share | $ | 0.34 | $ | 0.37 | $ | 0.56 | $ | 1.04 | ||||||||||||||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.37 | $ | 0.56 | $ | 1.03 | ||||||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
(in thousands except share data) | $’s | Net | $’s | Net | $’s | Net | $’s | Net | ||||||||||||||||||||
Sales | Sales | Sales | Sales | |||||||||||||||||||||||||
Merchandise sales and services, net | $ | 319,035 | 100 | % | $ | 329,561 | 100 | % | $ | 383,852 | 100 | % | $ | 530,428 | 100 | % | ||||||||||||
Gross margin | 154,588 | 48.5 | % | 149,674 | 45.4 | % | 174,450 | 45.4 | % | 231,625 | 43.7 | % | ||||||||||||||||
Operating income | 11,960 | 3.7 | % | 18,386 | 5.6 | % | 23,271 | 6.1 | % | 74,724 | 14.1 | % | ||||||||||||||||
Net income | $ | 7,336 | 2.3 | % | $ | 11,289 | 3.4 | % | $ | 14,279 | 3.7 | % | $ | 45,943 | 8.7 | % | ||||||||||||
Basic and diluted earnings per common share(1)(2) | $ | 0.23 | $ | 0.35 | $ | 0.45 | $ | 1.44 | ||||||||||||||||||||
-1 | For periods ended April 4, 2014 and prior, basic earnings per share are computed using 31,956,521, the number of shares of Lands’ End common stock outstanding on April 4, 2014, the date on which the Lands’ End common stock was distributed to the stockholders of Sears Holdings Corporation. The same number of shares was used to calculate basic and diluted earnings per share for Fiscal 2013 as there were no dilutive securities during these periods. | |||||||||||||||||||||||||||
-2 | The sum of the quarterly earnings per share—basic and diluted amounts may not equal the fiscal year amount due to rounding. |
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | ||
Jan. 30, 2015 | |||
Subsequent Events [Abstract] | |||
Schedule of costs related to product recall | The impacts of the sleepwear recall recorded in Fiscal 2014 are as follows: | ||
(in thousands) | increase/(decrease) | ||
Merchandise sales and services, net | (3,427 | ) | |
Cost of sales | (1,725 | ) | |
Other operating expense | 3,011 | ||
Operating income | (4,713 | ) | |
Income tax expense | (1,869 | ) | |
Net income | (2,844 | ) | |
There will be additional costs related to this recall in Fiscal 2015, but we do not believe that theses costs will be material. |
Background_and_Basis_of_Presen1
Background and Basis of Presentation (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Apr. 04, 2014 | Mar. 14, 2014 |
Class of Stock | |||||
Dividends paid prior to distribution | $500,000 | $0 | $0 | ||
Shares outstanding | 31,956,521 | 31,956,521 | |||
Par value of stock | $0.01 | $0.01 | |||
Sears Holding Corporation | |||||
Class of Stock | |||||
Common stock, distribution basis for issued and outstanding shares | 0.300795 | ||||
Percentage of common stock outstanding distributed to shareholders | 100.00% | ||||
Subsidiary of Sears Holdings Corp. | |||||
Class of Stock | |||||
Dividends paid prior to distribution | $500,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2012 | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Jan. 27, 2012 | Apr. 04, 2014 | |
Debt Instrument [Line Items] | ||||||
Allowance for doubtful accounts receivable | $688,000 | $1,031,000 | $1,316,000 | $1,293,000 | ||
Reserve for excess and obsolete inventory | 18,200,000 | 26,000,000 | ||||
Unamortized marketing costs | 20,700,000 | 15,600,000 | ||||
Marketing expenses | 208,000,000 | 198,600,000 | 204,100,000 | |||
Accounts receivable | 30,073,000 | 33,617,000 | ||||
Bad debt expense | 371,000 | 444,000 | 721,000 | |||
Foreign currency translation adjustments | 4,700,000 | 1,800,000 | 3,700,000 | |||
Restructuring charges | 2,500,000 | |||||
Income taxes paid | 19,842,000 | 4,059,000 | 5,333,000 | |||
Total self insurance expenses | 14,100,000 | 16,200,000 | 15,800,000 | |||
Number of dilutive securities (shares) | 0 | |||||
ABL Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility maximum borrowing capacity | 175,000,000 | |||||
Available borrowing under line of credit facility | 159,500,000 | |||||
Outstanding letters of credit | 15,500,000 | |||||
ABL Facility | Domestic Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility maximum borrowing capacity | 70,000,000 | |||||
ABL Facility | Foreign Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility maximum borrowing capacity | 15,000,000 | |||||
United Kingdom Subsidiary | ABL Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility maximum borrowing capacity | 30,000,000 | |||||
United States | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of LIFO inventory | 83.00% | 85.00% | ||||
Postretirement Medical Benefits | ||||||
Debt Instrument [Line Items] | ||||||
Postretirement benefit plan liability | 1,500,000 | |||||
Sears Holdings Corporation | ||||||
Debt Instrument [Line Items] | ||||||
Selling and administrative expenses allocated from former parent | 62,300,000 | 68,400,000 | 75,400,000 | |||
Postretirement benefit liability | 1,500,000 | |||||
Accounts Receivable, Net | Sears Holdings Corporation | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable, net, due from related party | 5,700,000 | 0 | ||||
Other Operating Expense | ||||||
Debt Instrument [Line Items] | ||||||
Product recall costs | $3,000,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $1,031 | $1,316 | $1,293 |
Provision | 371 | 444 | 721 |
Write-offs | -714 | -729 | -698 |
Ending balance | $688 | $1,031 | $1,316 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | $266,893,000 | $258,764,000 | |
Accumulated depreciation | -165,670,000 | -157,668,000 | |
Total property and equipment, net | 101,223,000 | 101,096,000 | |
Depreciation expense | 17,100,000 | 19,000,000 | 20,500,000 |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 3,529,000 | 3,563,000 | |
Buildings and improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 100,583,000 | 101,249,000 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 15 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 30 years | ||
Furniture, fixtures and equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 76,938,000 | 75,625,000 | |
Furniture, fixtures and equipment | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 10 years | ||
Computer hardware and software | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 73,062,000 | 65,810,000 | |
Computer hardware and software | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 3 years | ||
Computer hardware and software | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 5 years | ||
Leasehold improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | $12,781,000 | $12,517,000 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 3 years | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 7 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Revenue Recognition (Details) (USD $) | 12 Months Ended | ||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Revenue recognized from gift card breakage | $1,700,000 | $1,700,000 | $1,500,000 |
Sales returns and allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 13,805,000 | 13,524,000 | 14,607,000 |
Provision | 187,000,000 | 211,505,000 | 231,817,000 |
Write-offs | -186,937,000 | -211,224,000 | -232,900,000 |
Ending balance | $13,868,000 | $13,805,000 | $13,524,000 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Summary of Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance: Accumulated other comprehensive loss (net of tax of $1,211, $1,938 and $942, respectively) | ($1,995) | ($3,161) | ($1,538) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments (net of tax (expense) benefit of $2,720, $(727), and $996, respectively) | -5,303 | 1,166 | -1,623 |
Ending balance: Accumulated other comprehensive loss (net of tax of $3,931, $1,211, and $1,938, respectively) | -7,298 | -1,995 | -3,161 |
Accumulated other comprehensive loss, tax, beginning of period | 1,211 | 1,938 | 942 |
Foreign currency translation adjustments, tax | 2,720 | -727 | 996 |
Accumulated other comprehensive loss, tax, end of period | $3,931 | $1,211 | $1,938 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Summary of Earnings per Share (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Apr. 04, 2014 | Jan. 30, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | 2-May-14 | Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Earnings Per Share [Abstract] | ||||||||||||
Net income | $33,095 | $17,991 | $11,845 | $10,868 | $45,943 | $14,279 | $11,289 | $7,336 | $73,799 | $78,847 | $49,827 | |
Basic weighted average shares outstanding | 31,956,521 | 31,957,000 | 31,957,000 | 31,957,000 | ||||||||
Dilutive effect of stock awards (shares) | 59,000 | 0 | 0 | |||||||||
Diluted weighted average shares outstanding | 32,016,000 | 31,957,000 | 31,957,000 | |||||||||
Basic earnings per share (in dollars per share) | $1.04 | $0.56 | $0.37 | $0.34 | $2.31 | $2.47 | $1.56 | |||||
Diluted earnings per share (in dollars per share) | $1.03 | $0.56 | $0.37 | $0.34 | $2.31 | $2.47 | $1.56 | |||||
Antidilutive securities excluded from calculation (shares) | 0 | 0 | 0 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | ||||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Apr. 04, 2014 | Jan. 27, 2012 | |
Income Tax Examination [Line Items] | |||||
Deferred tax asset, foreign tax credits (expires in 2023) | $6,000,000 | ||||
Unrecognized tax benefits | 9,082,000 | 8,718,000 | 8,507,000 | 8,800,000 | 8,209,000 |
Unrecognized tax benefits, if recognized, would impact effective tax rate | 5,900,000 | ||||
Amount of interest and penalties recognized | 5,500,000 | 4,900,000 | |||
Amount of interest and penalties recognized, net of federal benefit | 3,600,000 | 3,200,000 | |||
Interest expense, net | 400,000 | 400,000 | 800,000 | ||
Deferred tax assets | 44,900,000 | 26,386,000 | |||
Other Liabilities | |||||
Income Tax Examination [Line Items] | |||||
Tax reserve for uncertain tax position | 13,700,000 | ||||
Sears Holdings Corporation | Deferred Tax Liabilities | |||||
Income Tax Examination [Line Items] | |||||
Deferred tax assets | 30,400,000 | ||||
Sears Holdings Corporation | Other Assets | |||||
Income Tax Examination [Line Items] | |||||
Indemnification receivable, uncertain tax positions | $14,300,000 | $13,700,000 |
Income_Taxes_Income_Taxes_Summ
Income Taxes Income Taxes - Summary of Income Before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Income before income taxes: | |||
United States | $114,772 | $117,318 | $65,131 |
Foreign | 5,785 | 11,073 | 16,939 |
Income before income taxes | $120,557 | $128,391 | $82,070 |
Income_Taxes_Summary_the_Compo
Income Taxes - Summary the Components of Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Income Tax Expense (Benefit), Continuing Operations, by Jurisdiction [Abstract] | |||
United States | $44,503 | $46,272 | $27,645 |
Foreign | 2,255 | 3,272 | 4,598 |
Total provision | 46,758 | 49,544 | 32,243 |
Current: | |||
Federal | 20,902 | 46,355 | 18,892 |
State | 6,361 | 5,631 | 5,678 |
Foreign | 1,950 | 2,519 | 4,607 |
Total current | 29,213 | 54,505 | 29,177 |
Deferred: | |||
Federal | 14,579 | -4,238 | 3,725 |
State | 2,661 | -426 | -650 |
Foreign | 305 | -297 | -9 |
Total deferred | $17,545 | ($4,961) | $3,066 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory federal tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.90% | 2.60% | 4.00% |
Other, net | 0.90% | 1.00% | 0.30% |
Total | 38.80% | 38.60% | 39.30% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Jan. 30, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred revenue | $7,894 | $4,144 |
Credit carryforwards | 5,964 | 0 |
Product recall and other reserves | 5,253 | 0 |
Deferred compensation | 4,823 | 0 |
Property and equipment | 4,695 | 4,376 |
Benefit plans | 0 | 1,734 |
Inventory | 4,822 | 5,631 |
Property and equipment | 153 | 1,233 |
Insurance reserves | 827 | 945 |
Other | 10,469 | 8,323 |
Total deferred tax assets | 44,900 | 26,386 |
Deferred tax liabilities: | ||
Intangible assets | 197,786 | 197,680 |
LIFO reserve | 19,864 | 17,924 |
Unremitted foreign earnings | 4,782 | 4,178 |
Catalog marketing | 3,474 | 3,280 |
Other | 39 | 2,877 |
Total deferred tax liabilities | 225,945 | 225,939 |
Net deferred tax liability | 181,045 | 199,553 |
Less current deferred tax (asset) liability | -3,438 | 4,019 |
Long-term deferred tax liability | $184,483 | $195,534 |
Income_Taxes_Summary_of_Unreco
Income Taxes - Summary of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Apr. 04, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Gross UTB balance at beginning of period | $8,718 | $8,507 | $8,209 | $8,800 |
Tax positions related to the current period—gross increases | 364 | 252 | 298 | |
Tax positions related to the prior periods—gross decreases | 0 | -41 | 0 | |
Settlements | 0 | 0 | 0 | |
Lapse of statutes of limitations | 0 | 0 | 0 | |
Gross UTB balance at end of period | $9,082 | $8,718 | $8,507 | $8,800 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | |
store_location | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Number of store locations the Company leases store space | 255 | ||
Number of store locations the Company owns | 1 | ||
Number of international shop-in-shops | 5 | ||
Rental expense under operating leases | $32,000,000 | $33,100,000 | $34,500,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 29,123,000 | ||
2016 | 27,380,000 | ||
2017 | 26,516,000 | ||
2018 | 18,365,000 | ||
2019 | 11,709,000 | ||
Thereafter | $5,356,000 | ||
Sears Holdings store locations | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Number of store locations the Company leases store space | 236 | ||
Lands' End Inlet Store locations | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Number of store locations the Company leases store space | 14 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 30, 2015 |
Performance Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award service period | 3 years |
Compensation expense not yet recognized | $3.60 |
Compensation expense not yet recognized, recognition period | 2 years 3 months 18 days |
Deferred Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Vesting period | 3 years |
Compensation expense not yet recognized | $1 |
Compensation expense not yet recognized, recognition period | 2 years 3 months 18 days |
Year 1 | Performance Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting rights, percentage | 25.00% |
Year 1 | Deferred Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting rights, percentage | 25.00% |
Year 2 | Performance Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting rights, percentage | 25.00% |
Year 2 | Deferred Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting rights, percentage | 25.00% |
Year 3 | Performance Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting rights, percentage | 50.00% |
Year 3 | Deferred Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting rights, percentage | 50.00% |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) (Selling and administrative expense, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |
Stock-based compensation expense | $2,118 |
Deferred Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |
Stock-based compensation expense | 235 |
Performance Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |
Stock-based compensation expense | $1,883 |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Unvested Stock Award Activity (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 30, 2015 |
Deferred Awards | |
Number of Shares [Roll Forward] | |
Unvested awards, beginning of period (in shares) | 0 |
Granted (in shares) | 47 |
Forfeited (in shares) | -3 |
Unvested awards, end of period (in shares) | 44 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested awards, beginning of period (in dollars per share) | $0 |
Granted (in dollars per share) | $27.86 |
Forfeited (in dollars per share) | $27.58 |
Unvested awards, end of period (in dollars per share) | $28.01 |
Performance Awards | |
Number of Shares [Roll Forward] | |
Unvested awards, beginning of period (in shares) | 0 |
Granted (in shares) | 304 |
Forfeited (in shares) | -107 |
Unvested awards, end of period (in shares) | 197 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested awards, beginning of period (in dollars per share) | $0 |
Granted (in dollars per share) | $27.56 |
Forfeited (in dollars per share) | $26.73 |
Unvested awards, end of period (in dollars per share) | $28.01 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Apr. 04, 2014 | |
Line of Credit Facility | ||||
Dividends paid prior to distribution | $500,000,000 | $0 | $0 | |
Debt issuance costs | 11,433,000 | 0 | 0 | |
ABL Facility | Line of Credit | ||||
Line of Credit Facility | ||||
Line of credit facility maximum borrowing capacity | 175,000,000 | |||
Available borrowing under line of credit facility | 159,500,000 | |||
Outstanding letters of credit | 15,500,000 | |||
ABL Facility | Domestic Letters of Credit | ||||
Line of Credit Facility | ||||
Line of credit facility maximum borrowing capacity | 70,000,000 | |||
ABL Facility | Foreign Letters of Credit | ||||
Line of Credit Facility | ||||
Line of credit facility maximum borrowing capacity | 15,000,000 | |||
ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Line of credit facility, covenant terms, minimum percentage of loan cap amount | 10.00% | |||
Line of credit facility, covenant terms, minimum excess credit availability | 15,000,000 | |||
Line of credit facility, covenant terms, minimum fixed charge coverage ratio | 1 | |||
Term Loan Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Secured debt | 515,000,000 | |||
Debt issuance costs | 11,400,000 | |||
Line of credit facility, amortization rate | 1.00% | |||
Interest rate at the end of period | 4.25% | |||
United Kingdom Subsidiary | ABL Facility | Line of Credit | ||||
Line of Credit Facility | ||||
Line of credit facility maximum borrowing capacity | 30,000,000 | |||
Minimum | ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Line of credit facility, unused commitment fee percentage | 0.25% | |||
Minimum | Term Loan Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 0.00% | |||
Maximum | ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Line of credit facility, unused commitment fee percentage | 0.38% | |||
Maximum | Term Loan Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 50.00% | |||
London Interbank Offered Rate (LIBOR) | Term Loan Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 3.25% | |||
Interest rate floor | 1.00% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 1.50% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 2.00% | |||
Base Rate | Term Loan Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 2.25% | |||
Base Rate | Minimum | ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 0.50% | |||
Base Rate | Maximum | ABL Facility | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 1.00% | |||
Subsidiary of Sears Holdings Corp. | ||||
Line of Credit Facility | ||||
Dividends paid prior to distribution | $500,000,000 |
Debt_Schedule_of_Aggregate_Mat
Debt - Schedule of Aggregate Maturities (Details) (USD $) | Jan. 30, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Less than 1 year | $5,150 |
1 - 2 years | 5,150 |
2 - 3 years | 5,150 |
3 - 4 years | 5,150 |
4 - 5 years | 5,150 |
Thereafter | 485,388 |
Total aggregate maturities | $511,138 |
Postretirement_Benefits_and_Re2
Postretirement Benefits and Retirement Plan - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Sears Holdings Corporation | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Postretirement benefit liability | $1.50 | ||
Company 401(k) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses under defined contribution plan | $3.40 | $3.30 | $3.60 |
Postretirement Medical Benefits | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Annual rate of compensation increase | 8.00% | ||
Ultimate trend rate for health care costs for 2020 and thereafter | -5.00% |
Postretirement_Benefits_and_Re3
Postretirement Benefits and Retirement Plan - Summary of the Change in Benefit Obligation and Plan Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Change in benefit obligation: | |||
Transfer to Sears Holdings | ($1,526) | $0 | |
Postretirement Medical Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 1,541 | 1,678 | |
Interest cost | 12 | 58 | 70 |
Plan participants’ contributions | 0 | 18 | |
Actuarial gain | -27 | -103 | |
Benefits paid | 0 | -110 | |
Benefit obligation at end of year, net amount recognized | 0 | 1,541 | 1,678 |
Change in plan assets at fair value: | |||
Employer contributions | 0 | 92 | |
Plan participants’ contributions | 0 | 18 | |
Benefits paid | 0 | -110 | |
Plan assets at end of year | $0 | $0 |
Postretirement_Benefits_and_Re4
Postretirement Benefits and Retirement Plan - Summary of Net Periodic Benefit (Income) Components (Details) (Postretirement Medical Benefits, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Postretirement Medical Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Interest cost | $12 | $58 | $70 |
Recognized net actuarial (gain) loss | -27 | -103 | 29 |
Total postretirement benefit (income) cost | ($15) | ($45) | $99 |
Weighted-average assumption at end of year: | |||
Discount rate | 4.00% | 4.20% |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities (Details) (Restricted Cash, Level 1, USD $) | Jan. 30, 2015 | Jan. 31, 2014 |
In Millions, unless otherwise specified | ||
Restricted Cash | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash | $3.30 | $3.30 |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities - Carrying and Fair Values of Financial Instruments (Details) (USD $) | Jan. 30, 2015 |
In Thousands, unless otherwise specified | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term Debt, including short-term portion | $511,138 |
Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term Debt, including short-term portion | 511,138 |
Level 2 | Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term Debt, including short-term portion | $491,331 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill or intangible assets, amount | $0 | $0 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Accumulated Amortization | $25,888 | $23,258 |
Gross intangible assets | 554,600 | 554,600 |
Total intangible assets, net | 528,712 | 531,342 |
Goodwill | 110,000 | 110,000 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Useful Life | 10 years | |
Amortizing intangible assets, Gross Carrying Amount | 26,300 | 26,300 |
Amortizing intangible assets, Accumulated Amortization | 25,888 | 23,258 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Gross Carrying Amount | $528,300 | $528,300 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Annual Amortization Expense | $2,630 | $2,630 | $2,630 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) (USD $) | Jan. 30, 2015 |
In Thousands, unless otherwise specified | |
Estimated Future Amortization Expense (in thousands) | |
2015 | $412 |
Related_Party_Agreements_and_T2
Related Party Agreements and Transactions (Details) (USD $) | 12 Months Ended | |||
Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Apr. 04, 2014 | |
Sears Holdings Corporation | ||||
Related Party Transaction | ||||
Related party revenue, net | $6,178,000 | $6,196,000 | $4,308,000 | |
Sears Holdings Corporation | Accounts Receivable, Net | ||||
Related Party Transaction | ||||
Accounts receivable, net, due from related party | 5,700,000 | 0 | ||
Sears Holdings Corporation | Accounts payable | ||||
Related Party Transaction | ||||
Accounts payable, due to related party | 9,100,000 | 0 | ||
Sears Holdings Corporation | Other Assets | ||||
Related Party Transaction | ||||
Indemnification receivable, uncertain tax positions | 14,300,000 | 13,700,000 | ||
Merchandise sales and services, net | ||||
Related Party Transaction | ||||
Call center service revenue | 8,126,000 | 7,246,000 | 6,227,000 | |
Merchandise sales and services, net | Sears Holdings Corporation | Shop Your Way Rewards | ||||
Related Party Transaction | ||||
Related party revenue, net | $10,800,000 | $7,900,000 |
Related_Party_Agreements_and_T3
Related Party Agreements and Transactions - Schedule of Related Party Costs (Details) (Sears Holdings Corporation, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
store_location | store_location | store_location | |
Related Party Transaction | |||
Number of Lands’ End Shops at Sears at period end | 236 | 274 | 276 |
Number of Lands' End Shops at Sears closed in period | 38 | 2 | |
Rent, CAM and occupancy costs | |||
Related Party Transaction | |||
Related party expenses, net | 26,605 | 28,021 | 29,232 |
Retail services, store labor | |||
Related Party Transaction | |||
Related party expenses, net | 31,087 | 34,495 | 39,399 |
Supply chain costs | |||
Related Party Transaction | |||
Related party expenses, net | 1,044 | 2,037 | 2,569 |
Financial services and payment processing | |||
Related Party Transaction | |||
Related party expenses, net | 3,034 | 3,353 | 3,261 |
Total expenses | |||
Related Party Transaction | |||
Related party expenses, net | 61,770 | 67,906 | 74,461 |
Related_Party_Agreements_and_T4
Related Party Agreements and Transactions - Details of General Corporate Services (Details) (Sears Holdings Corporation, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Sourcing | |||
Related Party Transaction | |||
Related party expenses, net | $8,986 | $9,805 | $10,118 |
Shop Your Way Rewards | |||
Related Party Transaction | |||
Related party expenses, net | 4,202 | 8,788 | 4,586 |
Shared services | |||
Related Party Transaction | |||
Related party expenses, net | 559 | 442 | 819 |
Co-location and services | |||
Related Party Transaction | |||
Related party expenses, net | 15 | 26 | 118 |
Total expenses | |||
Related Party Transaction | |||
Related party expenses, net | $13,762 | $19,061 | $15,641 |
Related_Party_Agreements_and_T5
Related Party Agreements and Transactions - Details of Use of Intellectual Property or Services (Details) (Sears Holdings Corporation, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Related Party Transaction | |||
Related party revenue, net | $6,178 | $6,196 | $4,308 |
Call center services | |||
Related Party Transaction | |||
Related party revenue, net | 2,346 | 1,505 | 1,539 |
Lands' End business outfitters revenue | |||
Related Party Transaction | |||
Related party revenue, net | 1,995 | 1,808 | 130 |
Credit card revenue | |||
Related Party Transaction | |||
Related party revenue, net | 1,519 | 1,276 | 1,329 |
Gift card revenue | |||
Related Party Transaction | |||
Related party revenue, net | 239 | 1,515 | 1,213 |
Royalty income | |||
Related Party Transaction | |||
Related party revenue, net | $79 | $92 | $97 |
Segment_Reporting_Details
Segment Reporting (Details) | 12 Months Ended |
Jan. 30, 2015 | |
segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment_Reporting_Details_by_P
Segment Reporting - Details by Product Category, Segment and Geographic Region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | 2-May-14 | Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | $504,566 | $373,082 | $347,222 | $330,483 | $530,428 | $383,852 | $329,561 | $319,035 | $1,555,353 | $1,562,876 | $1,585,927 |
Total adjusted EBITDA | 164,298 | 150,010 | 107,673 | ||||||||
Depreciation and amortization | 19,703 | 21,599 | 23,121 | ||||||||
Total assets | 1,353,437 | 1,194,275 | 1,353,437 | 1,194,275 | |||||||
Total capital expenditures | 16,608 | 9,887 | 14,993 | ||||||||
Total property and equipment, net | 101,223 | 101,096 | 101,223 | 101,096 | |||||||
Operating segments | Direct | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 1,320,642 | 1,303,862 | 1,304,009 | ||||||||
Total adjusted EBITDA | 192,763 | 166,313 | 141,390 | ||||||||
Depreciation and amortization | 15,640 | 16,691 | 17,173 | ||||||||
Total assets | 1,023,364 | 1,074,018 | 1,023,364 | 1,074,018 | |||||||
Total capital expenditures | 15,160 | 9,057 | 14,657 | ||||||||
Operating segments | Retail | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 234,632 | 258,922 | 281,821 | ||||||||
Total adjusted EBITDA | 7,161 | 4,665 | -5,650 | ||||||||
Depreciation and amortization | 2,618 | 3,547 | 4,606 | ||||||||
Total assets | 67,765 | 75,755 | 67,765 | 75,755 | |||||||
Total capital expenditures | 1,004 | 260 | 84 | ||||||||
Corporate/other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 79 | 92 | 97 | ||||||||
Total adjusted EBITDA | -35,626 | -20,968 | -28,067 | ||||||||
Depreciation and amortization | 1,445 | 1,361 | 1,342 | ||||||||
Total assets | 262,308 | 44,502 | 262,308 | 44,502 | |||||||
Total capital expenditures | 444 | 570 | 252 | ||||||||
Apparel | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 1,248,847 | 1,245,670 | 1,269,685 | ||||||||
Non-apparel | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 220,385 | 226,302 | 224,057 | ||||||||
Services and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 86,121 | 90,904 | 92,185 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 1,309,252 | 1,289,359 | 1,282,803 | ||||||||
Total property and equipment, net | 88,300 | 86,085 | 88,300 | 86,085 | |||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 159,796 | 181,129 | 199,548 | ||||||||
Total property and equipment, net | 12,380 | 14,320 | 12,380 | 14,320 | |||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 56,014 | 54,948 | 59,731 | ||||||||
Total property and equipment, net | 543 | 691 | 543 | 691 | |||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total property and equipment, net | 11,826 | 13,586 | 11,826 | 13,586 | |||||||
Other foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | $30,291 | $37,440 | $43,845 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 30, 2015 | Jan. 30, 2015 | Mar. 04, 2015 |
Tax Year 2008 | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | $0.20 | $0.70 | |
Minimum | Reduction in Taxes | Tax Years 2007 - 2014 | |||
Gain Contingencies | |||
Potential aggregate recovery | 2.8 | 2.8 | |
Maximum | Reduction in Taxes | Tax Years 2007 - 2014 | |||
Gain Contingencies | |||
Potential aggregate recovery | 4 | 4 | |
Subsequent Event | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | 4 | ||
Subsequent Event | Tax Years 2005 - 2006 | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | 1.6 | ||
Subsequent Event | Selling and Administrative Costs | Tax Years 2007, 2009 and 2010 | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | $1.60 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Jan. 30, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Current [Abstract] | ||
Deferred gift card revenue | $23,025 | $28,819 |
Accrued employee compensation and benefits | 18,778 | 11,811 |
Reserve for sales returns and allowances | 13,868 | 13,805 |
Deferred revenue | 11,228 | 15,966 |
Income taxes payable | 9,559 | 0 |
Accrued property, sales and other taxes | 8,194 | 6,262 |
Short-term portion of long-term debt | 5,150 | 0 |
Product recall | 4,406 | 0 |
Other | 13,345 | 7,292 |
Total other current liabilities | $107,553 | $83,955 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Apr. 04, 2014 | Jan. 30, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | 2-May-14 | Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Merchandise sales and services, net | $504,566 | $373,082 | $347,222 | $330,483 | $530,428 | $383,852 | $329,561 | $319,035 | $1,555,353 | $1,562,876 | $1,585,927 | |
Gross margin | 222,208 | 183,295 | 168,406 | 162,022 | 231,625 | 174,450 | 149,674 | 154,588 | ||||
Operating income | 60,453 | 35,098 | 25,298 | 18,794 | 74,724 | 23,271 | 18,386 | 11,960 | 139,643 | 128,341 | 82,003 | |
Net income | $33,095 | $17,991 | $11,845 | $10,868 | $45,943 | $14,279 | $11,289 | $7,336 | $73,799 | $78,847 | $49,827 | |
Basic earnings per share (in dollars per share) | $1.04 | $0.56 | $0.37 | $0.34 | $2.31 | $2.47 | $1.56 | |||||
Diluted earnings per share (in dollars per share) | $1.03 | $0.56 | $0.37 | $0.34 | $2.31 | $2.47 | $1.56 | |||||
Basic and diluted earnings per common share (in dollars per share) | $1.44 | $0.45 | $0.35 | $0.23 | ||||||||
Merchandise sales and services, net to net sales, percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Gross margin to net sales, percentage | 44.00% | 49.10% | 48.50% | 49.00% | 43.70% | 45.40% | 45.40% | 48.50% | ||||
Operating income to net sales, percentage | 12.00% | 9.40% | 7.30% | 5.70% | 14.10% | 6.10% | 5.60% | 3.70% | ||||
Net income to net sales, percentage | 6.60% | 4.80% | 3.40% | 3.30% | 8.70% | 3.70% | 3.40% | 2.30% | ||||
Number of common stock shares expected to be distributed by former parent company | 31,956,521 | 31,957,000 | 31,957,000 | 31,957,000 | ||||||||
Number of dilutive securities (shares) | 0 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 30, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | 2-May-14 | Jan. 31, 2014 | Nov. 01, 2013 | Aug. 02, 2013 | 3-May-13 | Jan. 30, 2015 | Jan. 31, 2014 | Feb. 01, 2013 | Mar. 24, 2015 |
Subsequent Event [Line Items] | ||||||||||||
Merchandise sales and services, net | $504,566 | $373,082 | $347,222 | $330,483 | $530,428 | $383,852 | $329,561 | $319,035 | $1,555,353 | $1,562,876 | $1,585,927 | |
Cost of sales (excluding depreciation and amortization) | 819,422 | 852,539 | 881,817 | |||||||||
Other operating expense, net | 3,250 | 70 | 70 | |||||||||
Operating income | 60,453 | 35,098 | 25,298 | 18,794 | 74,724 | 23,271 | 18,386 | 11,960 | 139,643 | 128,341 | 82,003 | |
Income tax expense | 46,758 | 49,544 | 32,243 | |||||||||
Net income | 33,095 | 17,991 | 11,845 | 10,868 | 45,943 | 14,279 | 11,289 | 7,336 | 73,799 | 78,847 | 49,827 | |
Children's sleepwear recall | Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Merchandise sales and services, net | -3,427 | |||||||||||
Cost of sales (excluding depreciation and amortization) | -1,725 | |||||||||||
Other operating expense, net | 3,011 | |||||||||||
Operating income | -4,713 | |||||||||||
Income tax expense | -1,869 | |||||||||||
Net income | ($2,844) |