Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 27, 2017 | Mar. 31, 2017 | Jul. 29, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Lands' End, Inc. | ||
Entity Central Index Key | 799,288 | ||
Current Fiscal Year End Date | --01-27 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 27, 2017 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 32,029,359 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 84.8 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
REVENUES | |||
Net revenue | $ 1,335,760 | $ 1,419,778 | $ 1,555,353 |
Gross profit | |||
Cost of sales (excluding depreciation and amortization) | 759,352 | 767,189 | 819,422 |
Gross profit | 576,408 | 652,589 | 735,931 |
Selling and administrative | 536,576 | 545,301 | 573,335 |
Depreciation and amortization | 19,003 | 17,399 | 19,703 |
Intangible asset impairment | 173,000 | 98,300 | 0 |
Other operating expense (income), net | 460 | (3,327) | 3,250 |
Total costs and expenses | 729,039 | 657,673 | 596,288 |
Operating (loss) income | (152,631) | (5,084) | 139,643 |
Interest expense | 24,630 | 24,826 | 20,494 |
Other expense (income), net | 1,619 | (671) | (1,408) |
(Loss) income before income taxes | (178,880) | (29,239) | 120,557 |
Income tax (benefit) expense | (69,098) | (9,691) | 46,758 |
NET (LOSS) INCOME | $ (109,782) | $ (19,548) | $ 73,799 |
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS (Note 2) | |||
Basic earnings per share (in dollars per share) | $ (3.43) | $ (0.61) | $ 2.31 |
Diluted earnings per share (in dollars per share) | $ (3.43) | $ (0.61) | $ 2.31 |
Basic weighted average common shares outstanding | 32,021 | 31,979 | 31,957 |
Diluted weighted average common shares outstanding | 32,021 | 31,979 | 32,016 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Jan. 27, 2017 | Jan. 29, 2016 |
Current assets | ||
Cash and cash equivalents | $ 213,108 | $ 228,368 |
Restricted cash | 3,300 | 3,300 |
Accounts receivable, net | 39,284 | 32,061 |
Inventories, net | 325,314 | 329,203 |
Prepaid expenses and other current assets | 26,394 | 23,618 |
Total current assets | 607,400 | 616,550 |
Property and equipment, net | 122,836 | 109,831 |
Goodwill | 110,000 | 110,000 |
Intangible asset, net | 257,000 | 430,000 |
Other assets | 17,155 | 15,145 |
Total assets | 1,114,391 | 1,281,526 |
Current liabilities | ||
Accounts payable | 162,408 | 146,097 |
Other current liabilities | 86,446 | 83,992 |
Total current liabilities | 248,854 | 230,089 |
Long-term debt, net | 490,043 | 493,838 |
Long-term deferred tax liabilities | 90,467 | 157,252 |
Other liabilities | 13,615 | 15,838 |
Total liabilities | 842,979 | 897,017 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01- authorized: 480,000,000 shares; issued and outstanding: 32,029,359, 31,991,668, respectively | 320 | 320 |
Additional paid-in capital | 343,971 | 344,244 |
Retained (deficit) earnings | (60,453) | 49,329 |
Accumulated other comprehensive loss | (12,426) | (9,384) |
Total stockholders’ equity | 271,412 | 384,509 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,114,391 | $ 1,281,526 |
Consolidated and Combined Bala4
Consolidated and Combined Balance Sheets (Parenthetical) - $ / shares | Jan. 27, 2017 | Jan. 29, 2016 |
Statement of Financial Position [Abstract] | ||
Par value of stock | $ 0.01 | $ 0.01 |
Shares authorized for issuance | 480,000,000 | 480,000,000 |
Shares outstanding | 32,029,359 | 31,991,668 |
Consolidated and Combined Stat5
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (109,782) | $ (19,548) | $ 73,799 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,003 | 17,399 | 19,703 |
Intangible asset impairment | 173,000 | 98,300 | 0 |
Product recall | (212) | (3,371) | 4,713 |
Amortization of debt issuance costs | 1,712 | 1,741 | 1,563 |
Loss on disposal of property and equipment | 672 | 44 | 239 |
Stock-based compensation | 2,118 | ||
Stock-based compensation expense | 2,230 | 2,395 | 2,118 |
Deferred income taxes | (67,253) | (22,670) | 17,545 |
Change in operating assets and liabilities: | |||
Inventories | 755 | (29,819) | 64,252 |
Accounts payable | 16,951 | 10,005 | 19,207 |
Other operating assets | (12,356) | 3,462 | (9,342) |
Other operating liabilities | (1,027) | (22,047) | 17,324 |
Net cash provided by operating activities | 23,693 | 35,891 | 211,121 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of property and equipment | 47 | 0 | 0 |
Purchases of property and equipment | (33,319) | (22,224) | (16,608) |
Net cash used in investing activities | (33,272) | (22,224) | (16,608) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Contributions from / (distributions to) Sears Holdings, net | 0 | 0 | 8,481 |
Proceeds from issuance of long-term debt | 0 | 0 | 515,000 |
Payments on term loan facility | (5,150) | (5,150) | (3,862) |
Debt issuance costs | 0 | 0 | (11,433) |
Dividend paid to a subsidiary of Sears Holdings Corporation | 0 | 0 | (500,000) |
Net cash (used in) provided by financing activities | (5,150) | (5,150) | 8,186 |
Effects of exchange rate changes on cash | (531) | (1,603) | (3,656) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (15,260) | 6,914 | 199,043 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 228,368 | 221,454 | |
CASH AND CASH EQUIVALENTS, END OF YEAR | 213,108 | 228,368 | 221,454 |
SUPPLEMENTAL INFORMATION: | |||
Unpaid liability to acquire property and equipment | 8,419 | 8,182 | 4,157 |
Income taxes paid | 3,653 | 23,991 | 19,842 |
Interest paid | $ 22,484 | $ 22,690 | $ 18,726 |
Consolidated and Combined Stat6
Consolidated and Combined Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Net Parent Company Investment |
Beginning Balance, in USD at Jan. 31, 2014 | $ 792,314 | $ (1,995) | $ 794,309 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) 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 | ||||
Balance at January 30, 2015 | 8,481 | 8,481 | ||||
Reclassification of net parent company investment to common stock and additional paid-in capital in conjunction with the separation (in shares) | (31,957,000) | |||||
Dividend paid to parent company | (500,000) | 0 | (500,000) | |||
Cumulative translation adjustment, net of tax | 32,784 | 32,784 | ||||
Reclassification of net parent company investment to common stock and additional paid-in capital in conjunction with the separation, in USD | 0 | $ 320 | 340,176 | (340,496) | ||
Shares outstanding at Jan. 30, 2015 | 31,956,521 | |||||
Ending Balance, in USD at Jan. 30, 2015 | 404,193 | $ 320 | 342,294 | 68,877 | (7,298) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (19,548) | (19,548) | ||||
Cumulative translation adjustment, net of tax | (2,086) | (2,086) | ||||
Stock-based compensation expense | 2,395 | $ 0 | 2,395 | 0 | ||
Vesting of restricted shares (in shares) | 52,948 | |||||
Vesting of restricted shares | 0 | 0 | ||||
Restricted stock shares surrendered for taxes (in shares) | (18,000) | |||||
Dividend paid to parent company | (19,548) | 0 | ||||
Cumulative translation adjustment, net of tax | 0 | |||||
Reclassification of net parent company investment to common stock and additional paid-in capital in conjunction with the separation, in USD | $ (445) | $ 0 | (445) | 0 | ||
Shares outstanding at Jan. 29, 2016 | 31,991,668 | 31,991,668 | ||||
Ending Balance, in USD at Jan. 29, 2016 | $ 384,509 | $ 320 | 344,244 | 49,329 | (9,384) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (109,782) | (109,782) | ||||
Cumulative translation adjustment, net of tax | (3,042) | (3,042) | ||||
Adjustment from pre-Separation deferred tax liabilities | (2,107) | (2,107) | ||||
Stock-based compensation expense | 2,230 | 2,230 | ||||
Vesting of restricted shares (in shares) | 57,543 | |||||
Restricted stock shares surrendered for taxes (in shares) | (19,852) | |||||
Restricted stock shares surrendered for taxes | $ 396 | 396 | ||||
Dividend paid to parent company | 0 | |||||
Shares outstanding at Jan. 27, 2017 | 32,029,359 | 32,029,359 | ||||
Ending Balance, in USD at Jan. 27, 2017 | $ 271,412 | $ 320 | $ 343,971 | $ (60,453) | $ (12,426) | $ 0 |
Consolidated and Combined Stat7
Consolidated and Combined Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Consolidated and Combined Statements of Comprehensive Operations [Abstract] | |||
Net (loss) income | $ (109,782) | $ (19,548) | $ 73,799 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (3,042) | (2,086) | (5,303) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (112,824) | $ (21,634) | $ 68,496 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Jan. 27, 2017 | |
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 and Lands’ End stores. Terms that are commonly used in the Company's notes to consolidated financial statements are defined as follows: • ABL Facility - Asset-based senior secured credit agreements, dated as of April 4, 2014, with Bank of America, N.A and certain other lenders • Adjusted EBITDA - Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Other Income, net, and certain significant items • ASC - Financial Accounting Standards Board 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 - Financial Accounting Standards Board Accounting Standards Update • CAM - Common area maintenance for leased properties • Debt Facilities - Collectively, the ABL Facility and the Term Loan Facility • Deferred Awards - Time vesting stock awards • EPS - Earnings per share • ERP - Enterprise resource planning software solutions • ESL - ESL Investments, Inc. and its investment affiliates, including Edward S. Lampert • FASB - Financial Accounting Standards Board • First Quarter 2016 - The 13 weeks ended April 29, 2016 • First Quarter 2015 - The 13 weeks ended May 1, 2015 • Fiscal 2017 - The Company's next fiscal year representing the 53 weeks ending February 2, 2018 • Fiscal 2016 - The 52 weeks ended January 27, 2017 • Fiscal 2015 - The 52 weeks ended January 29, 2016 • Fiscal 2014 - The 52 weeks ended January 30, 2015 • Fourth Quarter 2016 - The 13 weeks ended January 27, 2017 • Fourth Quarter 2015 - The 13 weeks ended January 29, 2016 • GAAP - Accounting principles generally accepted in the United States • LIBOR - London inter-bank offered rate • Performance Awards - Performance-based stock awards • 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) • Sears Roebuck - Sears, Roebuck and Co., a subsidiary of Sears Holdings Corporation • SEC - United States Securities and Exchange Commission • Second Quarter 2016 - The 13 weeks ended July 29, 2016 • Second Quarter 2015 - The 13 weeks ended July 31, 2015 • Separation - On April 4, 2014 Sears Holdings distributed 100% of the outstanding common stock of Lands' End to its shareholders • SHMC - Sears Holdings Management Corporation, a subsidiary of Sears Holdings Corporation • SHCP - SHC Promotions LLC, a subsidiary of Sears Holdings Corporation • SYW - Shop Your Way member loyalty program • Tax Sharing Agreement - A tax sharing agreement entered into by Sears Holdings Corporation and Lands' End in connection with the Separation • Term Loan Facility - Term loan credit agreements, dated as of April 4, 2014, with Bank of America, N.A. and certain other lenders • Third Quarter 2016 - The 13 weeks ended October 28, 2016 • Third Quarter 2015 - The 13 weeks ended October 31, 2015 • UK Borrower - A United Kingdom subsidiary borrower of Lands’ End under the ABL Facility • UTBs - Gross unrecognized tax benefits 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 (1) 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 (2) 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. 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 Statements of Stockholders' Equity as Net parent company investment. Through April 4, 2014, Sears Holdings Corporation’s investment in Lands’ End was shown as Net parent company investment in the 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 11, 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 27, 2017 | |
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 2016 , 2015 and 2014 each consisted of 52 weeks. Unless the context otherwise requires. The following fiscal periods are presented in this report. Fiscal Year Ended Weeks 2016 January 27, 2017 52 2015 January 29, 2016 52 2014 January 30, 2015 52 Seasonality The Company’s operations have historically been seasonal, with a disproportionate amount of net revenue 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 revenue 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 Cash and cash equivalents consist of highly liquid temporary instruments purchased with original maturities of three months or less and 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 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 $0.6 million as of January 27, 2017 and January 29, 2016 . 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 2016 Fiscal 2015 Fiscal 2014 Beginning balance $ 626 $ 688 $ 1,031 Provision 281 286 371 Write-offs (328 ) (348 ) (714 ) Ending balance $ 579 $ 626 $ 688 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 90% and 88% of total inventory as of January 27, 2017 and January 29, 2016 , respectively. If the FIFO method of accounting for inventory had been used, the effect on inventory would have been immaterial as of January 27, 2017 and January 29, 2016 . 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 $20.1 million and $15.5 million as of January 27, 2017 and January 29, 2016 , respectively. In Fiscal 2016, the Company sold approximately $3.8 million of inventory in exchange for marketing trade credits. This was recorded as a non-monetary transaction and the trade credits receivable was recorded at the value of the inventory exchanged. As of January 27, 2017, the Company had approximately $1.0 million and $3.6 million of trade credits receivable recorded in Accounts receivable, net and Other assets, respectively, including trade credits recorded in prior years, based on the time period in which the credits are expected to be used. 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 $12.7 million and $11.5 million as of January 27, 2017 and January 29, 2016 , respectively. The Company expenses the costs of marketing for website, magazine, 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 $193.2 million , $199.0 million and $208.0 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. These costs are included within Selling and administrative expenses in the accompanying Consolidated and Combined Statements of 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 January 27, 2017 January 29, 2016 Land — $ 3,466 $ 3,509 Buildings and improvements 15-30 98,213 99,957 Furniture, fixtures and equipment 3-10 78,563 78,864 Computer hardware and software 3-5 82,491 75,170 Leasehold improvements 3-7 11,176 12,841 Assets in development 34,882 17,020 Gross property and equipment 308,791 287,361 Accumulated depreciation (185,955 ) (177,530 ) Total property and equipment, net $ 122,836 $ 109,831 As of January 27, 2017 and January 29, 2016 , assets in development relate primarily to technological investments in a new ERP system. 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 Operations was $19.0 million , $17.0 million and $17.1 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. Impairment of Long-Lived Assets Long-lived assets, including property and equipment 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 of long-lived assets recognized in Fiscal 2016 , Fiscal 2015 or Fiscal 2014 . Goodwill and Indefinite-lived Intangible Asset Impairment Assessments Goodwill and the indefinite-lived trade name intangible asset 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 Company's goodwill and trade name intangible asset relate to Kmart Holding Corporation’s acquisition of Sears Roebuck in March 2005. 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 a discounted cash flow model, commonly referred to as the income approach. 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 revenues, 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. In prior years, a market approach was also used, and the Company's final estimate of the fair value of the reporting unit was developed by weighting the fair values determined through both the market participant and income approaches. 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, however, this method is dependent on the availability of comparable market participant information. Due to the lack of comparable market participants, the Company adjusted the valuation methodology to only rely on the discounted cash flow valuation. 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 2016 , Fiscal 2015 and Fiscal 2014 , the fair value of the reporting unit exceeded the carrying value and, as such, the Company did not record any goodwill impairment charges. In Fiscal 2016, Fiscal 2015 and Fiscal 2014, the fair value of the reporting unit exceeded the carrying value by 17.1%, 23.8% and 163.3%, respectively. Indefinite-lived intangible asset impairment assessments. The Company's indefinite-lived intangible asset, the Lands' End trade name, resides in the Direct reporting unit. Lands' End reviews the trade name for impairment by comparing the carrying amount to its fair value. The Company considers the income approach when testing the indefinite-lived intangible asset 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 revenue stream and discounting the resulting cash flows to determine a present value. The Company multiplied the selected royalty rate by the forecasted net revenue stream to calculate the cost savings (relief from royalty payment) associated with the asset. The cash flows are then discounted to present value using the selected discount rate and compared to the carrying value of the asset. In Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , the Company tested the indefinite-lived intangible assets as required. As a result of this testing, in Fiscal 2016 and Fiscal 2015 the Company recorded a non-cash pretax trade name impairment charge to the Direct segment of approximately $173.0 million and $98.3 million , respectively, to the Intangible asset impairment line in the Consolidated and Combined Statements of Operations. No trade name impairment charges were recorded in Fiscal 2014 . 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 January 27, 2017 and January 29, 2016 , other than for letters of credit. See Note 3, Debt . 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 or discloses 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 $39.3 million and $32.1 million as of January 27, 2017 and January 29, 2016 , respectively. Bad debt expense was $0.3 million , $0.3 million and $0.4 million in Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. At January 27, 2017 and January 29, 2016 accounts receivable included $3.7 million and $3.9 million , respectively, due from Sears Holdings. Cash and cash equivalents, Accounts receivable, Accounts payable and Other current liabilities are reflected in the Consolidated 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 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 27, 2017 and January 29, 2016 . See Note 7, 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 insignificant net foreign exchange transaction losses in Fiscal 2016, and losses of $5.7 million and $4.7 million in Fiscal 2015 and Fiscal 2014 , respectively, in the accompanying Consolidated and Combined Statements of 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. Net revenues 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 Balance Sheets. Reserves for sales returns and allowances consisted of the following: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Beginning balance $ 12,605 $ 13,868 $ 13,805 Provision 143,410 166,579 187,000 Write-offs (144,221 ) (167,842 ) (186,937 ) Ending balance $ 11,794 $ 12,605 $ 13,868 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 three 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 $2.3 million , $2.2 million and $1.7 million in Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , 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’ SYW program. The expenses for this program are recorded in Cost of sales, as described in Note 11 , 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 $52.9 million , $56.6 million and $62.3 million in Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively, of costs allocated or charged to the Company by Sears Holdings. See Note 11 , Related Party Agreements and Transactions . Product Recall In Fiscal 2014, the Company recorded a $4.7 million accrual related to a recall of selected styles of children’s sleepwear that did not meet the federal flammability standard. In Fiscal 2016 and Fiscal 2015 , $0.2 million and $3.4 million , respectively, was reversed due to customer return rates for the recalled products being lower than estimated despite the efforts by the Company to contact impacted customers. This reversal was recorded in Other operating income (expense), net. 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. 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 Operations. See Note 9—Income Taxes. The Company performed an evaluation over its deferred tax assets and determined that a valuation allowance is not considered necessary. Without the $173.0 million and $98.3 million non-cash impairment charges to the indefinite-lived intangible asset in Fiscal 2016 and Fiscal 2015, respectively, the Company would not be in a cumulative loss position. 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. For purposes of the Combined Financial Statements, the income tax provision represents the tax attributable to these operations as if the Company were required to file separate tax returns. Sears Holdings paid all United States federal, state and local income taxes attributable to the Lands’ End business prior to the Separation and the related taxes payable and tax payments were reflected directly in Net parent company investment in the Balance Sheets. Prior to the Separation, income 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. 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 $18.2 million , $16.2 million and $14.1 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , 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 and were not material in Fiscal 2014 prior to the Separation. 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 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 $3.3 million , $3.3 million and $3.4 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. Other Comprehensive Loss Other comprehensive 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 2016 Fiscal 2015 Fiscal 2014 Beginning balance: Accumulated other comprehensive loss (net of tax of $5,053, $3,931 and $1,211, respectively) $ (9,384 ) $ (7,298 ) $ (1,995 ) Other comprehensive loss Foreign currency translation adjustments (net of tax of $1,638, $1,122, and $2,720, respectively) (3,042 ) (2,086 ) (5,303 ) Ending balance: Accumulated other comprehensive loss (net of tax of $6,691, $5,053, and $3,931, respectively) $ (12,426 ) $ (9,384 ) $ (7,298 ) Comprehensive loss—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 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 ASC. The following table summarizes the components of basic and diluted EPS: (in thousands, except per share amounts) Fiscal 2016 Fiscal 2015 Fiscal 2014 Net (loss) income $ (109,782 ) $ (19,548 ) $ 73,799 Basic weighted average shares outstanding 32,021 31,979 31,957 Dilutive effect of stock awards — — 59 Diluted weighted average shares outstanding 32,021 31,979 32,016 Basic (loss) earnings per share $ (3.43 ) $ (0.61 ) $ 2.31 Diluted (loss) earnings per share $ (3.43 ) $ (0.61 ) $ 2.31 Stock awards are considered anti-dilutive based on the application of the treasury stock method or in the event of a net loss. There were 163,633 and 41,994 anti-dilutive shares excluded from the diluted weighted average shares outstanding in Fiscal 2016 and Fiscal 2015 , respectively. There were no anti-dilutive securities excluded from the diluted weighted average shares outstanding in Fiscal 2014. New Accounting Pronouncements |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 27, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s (loss) income before income taxes in the United States and in foreign jurisdictions is as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 (Loss) income before income taxes: United States $ (174,461 ) $ (31,206 ) $ 114,772 Foreign (4,419 ) 1,967 5,785 Total (loss) income before income taxes $ (178,880 ) $ (29,239 ) $ 120,557 The components of the (benefit from) provision for income taxes are as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 United States $ (70,316 ) $ (9,737 ) $ 44,503 Foreign 1,218 46 2,255 Total (benefit) provision $ (69,098 ) $ (9,691 ) $ 46,758 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Current: Federal $ (2,834 ) $ 10,524 $ 20,902 State (229 ) 2,409 6,361 Foreign 1,218 46 1,950 Total current (1,845 ) 12,979 29,213 Deferred: Federal (62,645 ) (20,956 ) 14,579 State (4,608 ) (1,714 ) 2,661 Foreign — — 305 Total deferred (67,253 ) (22,670 ) 17,545 Total (benefit) provision $ (69,098 ) $ (9,691 ) $ 46,758 A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Fiscal 2016 Fiscal 2015 Fiscal 2014 Tax at statutory federal tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.7 % (1.6 )% 2.9 % Other, net 0.9 % (0.3 )% 0.9 % Total 38.6 % 33.1 % 38.8 % Deferred tax assets and liabilities consisted of the following: (in thousands) January 27, 2017 January 29, 2016 Deferred tax assets: Deferred revenue $ 4,903 $ 5,349 Legal and other reserves 1,892 1,839 Deferred compensation 4,653 3,199 Reserve for returns 3,578 4,911 Inventory 7,817 4,231 Currency translation adjustment - foreign subsidiaries 6,691 5,053 Other 8,197 6,935 Total deferred tax assets 37,731 31,517 Deferred tax liabilities: Intangible assets 96,812 161,503 LIFO reserve 24,601 20,153 Unremitted foreign earnings 5,208 5,722 Catalog marketing 1,577 1,390 Total deferred tax liabilities 128,198 188,768 Net deferred tax liability $ 90,467 $ 157,251 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 2016 Fiscal 2015 Fiscal 2014 Gross UTB balance at beginning of period $ 8,311 $ 9,082 $ 8,718 Tax positions related to the current period—gross increases 120 116 364 Tax positions related to the prior periods—gross decreases (1,530 ) (697 ) — Settlements — (190 ) — Gross UTB balance at end of period $ 6,901 $ 8,311 $ 9,082 As of January 27, 2017 , the Company had UTBs of $6.9 million . Of this amount, $4.5 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 Balance Sheets, and an indemnification asset from Sears Holdings Corporation for the $6.5 million pre-Separation UTBs is recorded in Other assets in the Consolidated Balance Sheets. 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. 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 27, 2017 , the total amount of interest expense and penalties recognized on the balance sheet was $4.9 million ( $3.2 million net of federal benefit). As of January 29, 2016 , the total amount of interest and penalties recognized on the balance sheet was $5.7 million ( $3.7 million net of federal benefit). The total amount of net interest expense recognized in the Consolidated and Combined Statements of Operations were insignificant for all periods presented. 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. The Company is currently under audit by the Internal Revenue Service for the year 2014. Sears Holdings and the Company are under examination by various state income tax jurisdictions for the years 2011 to 2014. 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 Balance Sheets. As a result of the Separation, the Company began filing its own income tax returns and, as a result certain tax attributes previously included in Net parent company investment were 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 Balance Sheets. As a result of the 2015 income tax return filed by the Company during Fiscal 2016, the Company recorded an increase in the deferred tax liabilities and a decrease in additional paid-in capital of $2.1 million related to the calculation of a deferred tax liability related to the LIFO inventory calculation that existed as of the date of the Separation. 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 is included in Other assets in the Consolidated Balance Sheets and was $11.4 million and $13.7 million at January 27, 2017 and January 29, 2016 , respectively. |
Leases
Leases | 12 Months Ended |
Jan. 27, 2017 | |
Leases [Abstract] | |
Leases | LEASES The Company leases stores, office space and warehouses under various leasing arrangements. As of January 27, 2017 , the Company leases store space in 216 Sears Holdings store locations (see Note 11, Related Party Agreements and Transactions ) and 12 Lands’ End Stores. The total number of retail stores, 230 , includes two Lands’ End stores that are owned by the Company 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 $30.6 million , $31.1 million and $32.0 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. Total future commitments under these operating leases (primarily leased Lands’ End Shops at Sears space at Sears Holdings locations as described in Note 11, Related Party Agreements and Transactions ) as of January 27, 2017 are as follows for the fiscal years ending (in thousands): 2017 $ 27,881 2018 18,663 2019 12,199 2020 2,180 2021 1,574 Thereafter 2,721 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 27, 2017 | |
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 Deferred Awards and 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 or in full after a three year period. 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 Operations : (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Deferred Awards $ 1,599 $ 1,534 $ 235 Performance Awards 631 861 1,883 Total stock-based compensation expense $ 2,230 $ 2,395 $ 2,118 Awards Granted In Fiscal 2016, the Company granted Deferred Awards to various employees. In general Deferred Awards granted during Fiscal 2016 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 Fiscal 2015 the Company granted Deferred Awards and Performance Awards to various employees. In general Deferred Awards granted during Fiscal 2015 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. The Performance Awards granted to executives vest over a four year service period and have a performance measure at the end of the second year of service. If earned, 25% of the awards vest in the second and third years and 50% vests in the fourth year. Changes in the Company’s Unvested Stock Awards Deferred Awards (in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Unvested Deferred Awards, as of January 30, 2015 44 $ 28.01 Granted 165 31.20 Vested (9 ) 28.02 Forfeited (25 ) 28.74 Unvested Deferred Awards, as of January 29, 2016 175 30.87 Granted 242 23.93 Vested (27 ) 33.53 Forfeited (138 ) 30.05 Unvested Deferred Awards, as of January 27, 2017 252 24.42 Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $4.1 million as of January 27, 2017 , which will be recognized over a weighted average period of approximately 1.7 years. Performance Awards (in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Unvested Performance Awards, as of January 30, 2015 197 $ 28.01 Granted 19 21.94 Vested (43 ) 27.86 Forfeited (64 ) 28.34 Unvested Performance Awards, as of January 29, 2016 109 26.81 Vested (30 ) 27.84 Forfeited (10 ) 26.73 Unvested Performance Awards, as of January 27, 2017 69 26.38 Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $0.1 million as of January 27, 2017 , which will be recognized over a weighted average period of approximately 0.3 years. |
Debt
Debt | 12 Months Ended |
Jan. 27, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt Arrangements On April 4, 2014, 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 January 27, 2017 and January 29, 2016 , other than for letters of credit. Also on April 4, 2014, Lands’ End entered into the 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 Debt 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 being amortized as an adjustment to Interest expense over the remaining life of the Debt Facilities. The Company's debt consisted of the following: January 27, 2017 January 29, 2016 (in thousands) Principal Amount Interest Rate Principal Amount Interest Rate Term Loan Facility, maturing April 4, 2021 $ 500,838 4.25 % $ 505,988 4.25 % ABL Facility, maturing April 4, 2019 — — % — — % 500,838 505,988 Less: current maturities in Other current liabilities 5,150 5,150 Less: unamortized debt issuance costs 5,645 7,000 Long-term debt, net $ 490,043 $ 493,838 During First Quarter 2016, the Company adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance, which requires an entity to present debt issuance costs as a deduction from the related debt liability. To conform to the current year presentation the Company reclassified $1.4 million of Prepaid expenses and other current assets and $5.6 million of Other assets to Long-term debt as of as of January 29, 2016. The following table summarizes the Company's borrowing availability under the ABL Facility: (in thousands) January 27, 2017 January 29, 2016 ABL maximum borrowing $ 175,000 $ 175,000 Outstanding letters of credit 19,705 24,311 Borrowing availability under ABL $ 155,295 $ 150,689 Interest; Fees The interest rates per annum applicable to the loans under the Debt Facilities are based on a fluctuating rate of interest measured by reference to, at the borrowers’ election, either (i) an adjusted 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 Debt 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. Amortization and Prepayments The Term Loan Facility amortizes 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 (as defined in the Term Loan Facility) 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. Based on Fiscal 2016 results, a mandatory prepayment triggered, however, excess cash flow was negative resulting in no prepayment to be made in the first quarter of Fiscal 2017. The Company’s aggregate scheduled maturities of the Term Loan Facility as of January 27, 2017 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 480,238 $ 500,838 Guarantees; Security All domestic obligations under the Debt 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. Representations and Warranties; Covenants Subject to specified exceptions, the Debt 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 Debt Facilities do not otherwise contain financial maintenance covenants. The Company was in compliance with all financial covenants related to the Debt Facilities as of January 27, 2017 . The Debt 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 Debt 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. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Jan. 27, 2017 | |
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 Balance Sheets at fair value. The fair value of Restricted cash as of January 27, 2017 and January 29, 2016 was $3.3 million , based on Level 1 inputs. Restricted cash amounts are valued based upon statements received from financial institutions. Carrying values and fair values of other financial instruments in the Consolidated Balance Sheets are as follows: January 27, 2017 January 29, 2016 (in thousands) Carrying Amount Fair Value Carrying Fair Long-term debt, including short-term portion $ 500,838 $ 379,385 $ 505,988 $ 418,073 Long-term debt was valued utilizing level 2 valuation techniques based on the closing inactive market bid price on January 27, 2017 . There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of January 27, 2017 and January 29, 2016 . Goodwill and indefinite-lived intangible assets are also tested annually or if a triggering event occurs that indicates an impairment loss may have incurred using fair value measurements with unobservable inputs (Level 3). As part of the annual testing in Fiscal 2016 , the fair value of the indefinite-lived trade name asset was estimated to be $257.0 million as of January 27, 2017 , less than its carrying amount of $430.0 million as of January 29, 2016 . During the annual testing in Fiscal 2015 , the fair value of the indefinite-lived trade name asset was estimated to be $430.0 million as of January 29, 2016 , less than its carrying amount of $528.3 million as of January 30, 2015 . As a result of these annual tests, the Company recorded a non-cash impairment charge of $173.0 million and $98.3 million in Fiscal 2016 and Fiscal 2015 , respectively, related to the trade name intangible asset, Lands' End. See Note 2, Summary of Significant Accounting Policies-Goodwill and Intangible Asset Impairment Assessments , and Note 8, Goodwill and Intangible Assets, for further details on the impairment charge and for further description of the valuation methodology used. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 27, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSET 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. ASC 350 requires companies to test goodwill and indefinite-lived intangible assets for impairment annually, or more often if an event or circumstance indicates that the carrying amount may not be recoverable. During Fiscal 2016 , Fiscal 2015 and Fiscal 2014 the Company conducted annual impairment testing of its goodwill and indefinite-lived intangible asset. As a result of this testing the Company recorded non-cash pretax indefinite-lived intangible asset impairment charges of $173.0 million and $98.3 million to our Direct segment during Fiscal 2016 and Fiscal 2015, respectively. The impairment is recorded in Intangible asset impairment on the Consolidated and Combined Statements of Operations. There was no impairment charge for intangible assets recorded in Fiscal 2014. There were no impairments of goodwill during any periods presented or since goodwill was first recognized. In Fiscal 2016, Fiscal 2015 and Fiscal 2014, the fair value of the reporting unit exceeded the carrying value by 17.1% , 23.8% and 163.3% , respectively. If actual results are not consistent with the Company's estimates and assumptions used in estimating revenue growth, future cash flows and asset fair values, the Company could incur further impairment charges for the intangible asset or goodwill, which could have an adverse effect on its results of operations. (See also Note 2, Summary of Significant Accounting Policies-Goodwill and Intangible Asset Impairment Assessments , for further details on the impairment charge). The following summarizes goodwill and intangible assets: (in thousands) January 27, 2017 January 29, 2016 Indefinite-lived intangible asset: Trade name $ 430,000 $ 528,300 Impairments (173,000 ) (98,300 ) Total intangible asset, net $ 257,000 $ 430,000 Goodwill $ 110,000 $ 110,000 Annual amortization expense (in thousands) Fiscal 2016 — Fiscal 2015 412 Fiscal 2014 2,630 |
Related Party Agreements and Tr
Related Party Agreements and Transactions | 12 Months Ended |
Jan. 27, 2017 | |
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. Additionally, in Fiscal 2016, ESL purchased approximately $10.7 million of the Company's outstanding debt at a discount of approximately $2.7 million . Due to the related party relationship, this discount was considered a cancellation of debt under Section 108 of the Internal Revenue Code, triggering additional income tax payments due in the current period for the Company. Prior to the Separation, Sears Holdings Corporation (including certain 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 SYW 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 Consolidated and Combined Statements of Operations . In its annual report on Form 10-K for its fiscal year ended January 28, 2017, Sears Holdings disclosed that its historical operating results indicate substantial doubt exists related to its ability to continue as a going concern. Sears Holdings also disclosed they believe that actions they have taken in the last 12 months and expected benefits from actions in 2017 are probable of occurring and mitigating the substantial doubt raised by their historical operating results and therefore will satisfy their liquidity needs the 12 months following the issuance of their financial statements. In connection with the Separation, the Company entered into various agreements with Sears Holdings, certain of which have been subsequently amended, 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 the Company, 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, and as amended, where applicable. 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 2016 Fiscal 2015 Fiscal 2014 Rent, CAM and occupancy costs $ 24,727 $ 25,239 $ 26,605 Retail services, store labor 24,052 26,773 31,087 Financial services and payment processing 2,834 2,792 3,034 Supply chain costs 979 985 1,044 Total expenses $ 52,592 $ 55,789 $ 61,770 Number of Lands’ End Shops at Sears at period end (1) 216 227 236 (1) During Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , 11 , 9 and 38 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. 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. 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. General Corporate Services Related party costs charged by Sears Holdings to the Company for general corporate services are as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Sourcing $ 10,878 $ 9,609 $ 8,986 Shop Your Way 2,301 2,896 4,202 Shared services 192 484 559 Co-location and services — — 15 Total expenses $ 13,371 $ 12,989 $ 13,762 Sourcing The Company contracts with a subsidiary of Sears Holdings to provide agreed upon buying agency services, on a non-exclusive basis, 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. During Second Quarter 2016 the Company entered into a new buying agency services agreement with a subsidiary of Sears Holding and terminated the agreement that was entered into at the time of the Separation. The new agreement provides for a higher commission rate and a higher annual commission minimum, as well as enhanced sourcing services, including for product development, costing analyses, vendor communications, vendor strategy and quality assurance. Certain of these amounts are capitalized into inventory and are expensed through cost of goods sold over the course of inventory turns and included in Cost of sales in the Consolidated and Combined Statements of Operations . Shop Your Way The Company contracts with SHMC to participate in Sears Holdings’ SYW 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. All SYW program expenses are recorded in Cost of sales in the Consolidated and Combined Statements of Operations . Shared Services The Company contracts with SHMC to provide certain shared corporate services. These shared services include compliance. 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 2016 Fiscal 2015 Fiscal 2014 Call center services $ 2,124 $ 2,344 $ 2,346 Lands' End business outfitters revenue 1,574 1,398 1,995 Credit card revenue 1,147 1,274 1,519 Royalty income 221 220 79 Gift card revenue (expense) (32 ) (33 ) 239 Total $ 5,034 $ 5,203 $ 6,178 Call Center Services The Company has entered into a contract with SHMC to provide call center services in support of Sears Holdings’ SYW program. This income is net of agreed upon costs directly attributable for the Company providing these services. The income is included in Net revenue and costs are included in Selling and administrative expenses in the Consolidated and Combined Statements of Operations . Total call center service income included in Net revenue was $8.2 million , $8.6 million and $8.1 million in Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. The contract for call center services will expire on April 30, 2017. 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 Net revenue in the Consolidated and Combined Statements of 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 revenue and receives a fee based on the generation of new credit card accounts. This income is included in Net revenue in the Consolidated and Combined Statements of 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 Net revenue in the Consolidated and Combined Statements of Operations . Gift Card Revenue (Expense) 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 Net revenue in the Consolidated and Combined Statements of Operations . Additional Related Party Balance Sheet Information At January 27, 2017 and January 29, 2016 , the Company included $3.7 million and $3.9 million in Accounts Receivable, net, respectively, and $3.1 million and $2.7 million in Accounts payable, respectively, in the Consolidated Balance Sheets to reflect amounts due from and owed to Sears Holdings. At January 27, 2017 and January 29, 2016 , a $11.4 million and $13.7 million receivable, respectively, was recorded by the Company in Other assets in the Consolidated 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. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 27, 2017 | |
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 revenues 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. Net revenue is aggregated by product category in the following table: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Net revenue: Apparel $ 1,086,439 $ 1,156,047 $ 1,248,847 Non-apparel 168,945 183,073 220,385 Services and other 80,376 80,658 86,121 Total Net revenue $ 1,335,760 $ 1,419,778 $ 1,555,353 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 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 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 27, 2017 , January 29, 2016 and January 30, 2015 . • 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 Lands’ End 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 2016 Fiscal 2015 Fiscal 2014 Net revenue: Direct $ 1,149,149 $ 1,214,993 $ 1,320,642 Retail 186,390 204,566 234,632 Corporate/other 221 219 79 Total Net revenue $ 1,335,760 $ 1,419,778 $ 1,555,353 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Adjusted EBITDA: Direct $ 78,582 $ 141,936 $ 192,763 Retail (5,560 ) (520 ) 7,161 Corporate/other (33,190 ) (34,128 ) (35,626 ) Total adjusted EBITDA $ 39,832 $ 107,288 $ 164,298 Loss on disposal of property and equipment 672 44 239 Product recall (212 ) (3,371 ) 4,713 Depreciation and amortization 19,003 17,399 19,703 Intangible asset impairment 173,000 98,300 — Operating (loss) income $ (152,631 ) $ (5,084 ) $ 139,643 Interest expense 24,630 24,826 20,494 Other income, net 1,619 (671 ) (1,408 ) Income tax (benefit) expense (69,098 ) (9,691 ) 46,758 Net (loss) income $ (109,782 ) $ (19,548 ) $ 73,799 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Depreciation and amortization: Direct $ 15,877 $ 13,916 $ 15,640 Retail 1,674 2,029 2,618 Corporate/other 1,452 1,454 1,445 Total Depreciation and amortization $ 19,003 $ 17,399 $ 19,703 (in thousands) January 27, 2017 January 29, 2016 Total assets: Direct $ 805,201 $ 953,502 Retail 69,792 69,321 Corporate/other 239,398 258,703 Total assets $ 1,114,391 $ 1,281,526 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Capital expenditures: Direct $ 32,590 $ 21,630 $ 15,160 Retail 635 318 1,004 Corporate/other 94 276 444 Total capital expenditures $ 33,319 $ 22,224 $ 16,608 The geographical allocation of Net revenue 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 2016 Fiscal 2015 Fiscal 2014 Net revenue: United States $ 1,143,529 $ 1,211,226 $ 1,309,252 Europe 125,410 136,890 159,796 Asia 50,030 51,808 56,014 Other foreign 16,791 19,854 30,291 Total Net revenue $ 1,335,760 $ 1,419,778 $ 1,555,353 (in thousands) January 27, 2017 January 29, 2016 Property and equipment, net: United States $ 113,045 $ 98,153 Europe 9,075 10,980 Asia 716 698 Total Property and equipment, net $ 122,836 $ 109,831 Other than the United States, no one country is greater than 10% of total Net revenue or of total Property and equipment, net. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 27, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is party to various claims, legal proceedings and investigations arising in the ordinary course of business. 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. While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on results of operations, cash flows or financial position taken as a whole. Beginning in 2005, the Company initiated 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 for each tax year from 2005 through 2016. As of March 31, 2017, the City has refunded, as the result of various court decisions, over $6.5 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 2014 ; (3) approximately $0.9 million arising from the 2008 tax year, recognized in Fiscal 2015 , and (4) approximately $2.4 million arising from the 2007, 2009, 2010, 2011 and 2012 tax years, recognized in Fiscal 2016. The claims arising from 2005 through 2010 and 2012 tax years are closed. The Company's claims arising from tax years 2011 and 2013 through 2016 remain unresolved and are still pending before the courts. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jan. 27, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following: (in thousands) January 27, 2017 January 29, 2016 Deferred gift card revenue $ 19,999 $ 20,802 Accrued employee compensation and benefits 13,165 12,785 Reserve for sales returns and allowances 11,794 12,605 Deferred revenue 10,660 11,097 Accrued property, sales and other taxes 7,578 7,536 Short-term portion of long-term debt 5,150 5,150 Product recall — 207 Other 18,100 13,810 Total other current liabilities $ 86,446 $ 83,992 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 27, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Fiscal 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except share data) $’s % Net Sales $’s % Net Sales $’s % Net Sales $’s % Net Sales Net revenue $ 273,433 100.0 % $ 292,010 100.0 % $ 311,476 100.0 % $ 458,841 100.0 % Gross profit 129,670 47.4 % 136,152 46.6 % 133,651 42.9 % 176,935 38.6 % Operating income (loss) (2) (3,486 ) (1.3 )% 2,712 0.9 % (3,423 ) (1.1 )% (148,434 ) (32.3 )% Net loss (2) $ (5,759 ) (2.1 )% $ (1,980 ) (0.7 )% $ (7,222 ) (2.3 )% $ (94,821 ) (20.7 )% Basic loss per common share (1) $ (0.18 ) $ (0.06 ) $ (0.23 ) $ (2.96 ) Diluted loss per common share (1) $ (0.18 ) $ (0.06 ) $ (0.23 ) $ (2.96 ) Fiscal 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except share data) $’s Net Sales $’s Net Sales $’s Net Sales $’s Net Sales Net revenue $ 299,387 100.0 % $ 312,414 100.0 % $ 334,434 100.0 % $ 473,543 100.0 % Gross profit 146,564 49.0 % 144,500 46.3 % 162,415 48.6 % 199,110 42.0 % Operating income (3) 8,495 2.8 % 17,918 5.7 % 23,297 7.0 % (54,794 ) (11.6 )% Net income (loss) (3) $ 1,724 0.6 % $ 7,461 2.4 % $ 10,725 3.2 % $ (39,458 ) (8.3 )% Basic earnings (loss) per common share (1) $ 0.05 $ 0.23 $ 0.34 $ (1.23 ) Diluted earnings (loss) per common share (1) $ 0.05 $ 0.23 $ 0.33 $ (1.23 ) (1) The sum of the quarterly earnings per share—basic and diluted amounts may not equal the fiscal year amount due to rounding. (2) Fourth Quarter 2016 Net loss includes an impairment charge of $173.0 million related to the non-cash write-down of our trade name indefinite-lived asset, Lands' End. (3) Fourth Quarter 2015 Net loss includes an impairment charge of $98.3 million related to the non-cash write-down of our trade name indefinite-lived asset, Lands' End. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 27, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements presented herein represent (1) 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 (2) 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. |
Fiscal Period, Policy | Fiscal Year The Company’s fiscal year end is on the Friday preceding the Saturday closest to January 31 each year. Fiscal Years 2016 , 2015 and 2014 each consisted of 52 weeks. Unless the context otherwise requires. The following fiscal periods are presented in this report. Fiscal Year Ended Weeks 2016 January 27, 2017 52 2015 January 29, 2016 52 2014 January 30, 2015 52 |
Accounting Policy - Seasonality | Seasonality The Company’s operations have historically been seasonal, with a disproportionate amount of net revenue 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 revenue contributed by new and existing stores, the timing and level of markdowns, competitive factors, weather and general economic conditions. |
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 Cash and cash equivalents consist of highly liquid temporary instruments purchased with original maturities of three months or less and 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 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. Allowances for doubtful accounts on accounts receivable balances were $0.6 million as of January 27, 2017 and January 29, 2016 . 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 2016 Fiscal 2015 Fiscal 2014 Beginning balance $ 626 $ 688 $ 1,031 Provision 281 286 371 Write-offs (328 ) (348 ) (714 ) Ending balance $ 579 $ 626 $ 688 |
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. The United States inventory accounted for using the LIFO method was 90% and 88% of total inventory as of January 27, 2017 and January 29, 2016 , respectively. If the FIFO method of accounting for inventory had been used, the effect on inventory would have been immaterial as of January 27, 2017 and January 29, 2016 . 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 $20.1 million and $15.5 million as of January 27, 2017 and January 29, 2016 , respectively. In Fiscal 2016, the Company sold approximately $3.8 million of inventory in exchange for marketing trade credits. This was recorded as a non-monetary transaction and the trade credits receivable was recorded at the value of the inventory exchanged. As of January 27, 2017, the Company had approximately $1.0 million and $3.6 million of trade credits receivable recorded in Accounts receivable, net and Other assets, respectively, including trade credits recorded in prior years, based on the time period in which the credits are expected to be used. |
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. Unamortized marketing costs reported as prepaid assets were $12.7 million and $11.5 million as of January 27, 2017 and January 29, 2016 , respectively. The Company expenses the costs of marketing for website, magazine, 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 $193.2 million , $199.0 million and $208.0 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. These costs are included within Selling and administrative expenses in the accompanying Consolidated and Combined Statements of Operations . |
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 January 27, 2017 January 29, 2016 Land — $ 3,466 $ 3,509 Buildings and improvements 15-30 98,213 99,957 Furniture, fixtures and equipment 3-10 78,563 78,864 Computer hardware and software 3-5 82,491 75,170 Leasehold improvements 3-7 11,176 12,841 Assets in development 34,882 17,020 Gross property and equipment 308,791 287,361 Accumulated depreciation (185,955 ) (177,530 ) Total property and equipment, net $ 122,836 $ 109,831 As of January 27, 2017 and January 29, 2016 , assets in development relate primarily to technological investments in a new ERP system. 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 Operations was $19.0 million , $17.0 million and $17.1 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. |
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Long-Lived Assets Long-lived assets, including property and equipment 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 of long-lived assets recognized in Fiscal 2016 , Fiscal 2015 or Fiscal 2014 . |
Goodwill and Intangible Asset Impairment Assessments | Goodwill and Indefinite-lived Intangible Asset Impairment Assessments Goodwill and the indefinite-lived trade name intangible asset 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 Company's goodwill and trade name intangible asset relate to Kmart Holding Corporation’s acquisition of Sears Roebuck in March 2005. 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 a discounted cash flow model, commonly referred to as the income approach. 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 revenues, 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. In prior years, a market approach was also used, and the Company's final estimate of the fair value of the reporting unit was developed by weighting the fair values determined through both the market participant and income approaches. 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, however, this method is dependent on the availability of comparable market participant information. Due to the lack of comparable market participants, the Company adjusted the valuation methodology to only rely on the discounted cash flow valuation. 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 2016 , Fiscal 2015 and Fiscal 2014 , the fair value of the reporting unit exceeded the carrying value and, as such, the Company did not record any goodwill impairment charges. In Fiscal 2016, Fiscal 2015 and Fiscal 2014, the fair value of the reporting unit exceeded the carrying value by 17.1%, 23.8% and 163.3%, respectively. Indefinite-lived intangible asset impairment assessments. The Company's indefinite-lived intangible asset, the Lands' End trade name, resides in the Direct reporting unit. Lands' End reviews the trade name for impairment by comparing the carrying amount to its fair value. The Company considers the income approach when testing the indefinite-lived intangible asset 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 revenue stream and discounting the resulting cash flows to determine a present value. The Company multiplied the selected royalty rate by the forecasted net revenue stream to calculate the cost savings (relief from royalty payment) associated with the asset. The cash flows are then discounted to present value using the selected discount rate and compared to the carrying value of the asset. In Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , the Company tested the indefinite-lived intangible assets as required. As a result of this testing, in Fiscal 2016 and Fiscal 2015 the Company recorded a non-cash pretax trade name impairment charge to the Direct segment of approximately $173.0 million and $98.3 million , respectively, to the Intangible asset impairment line in the Consolidated and Combined Statements of Operations. No trade name impairment charges were recorded in Fiscal 2014 . |
Financial Instruments with Off-Balance-Sheet Risk | 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 January 27, 2017 and January 29, 2016 , other than for letters of credit. See Note 3, Debt . |
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 or discloses 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 $39.3 million and $32.1 million as of January 27, 2017 and January 29, 2016 , respectively. Bad debt expense was $0.3 million , $0.3 million and $0.4 million in Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. At January 27, 2017 and January 29, 2016 accounts receivable included $3.7 million and $3.9 million , respectively, due from Sears Holdings. Cash and cash equivalents, Accounts receivable, Accounts payable and Other current liabilities are reflected in the Consolidated 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 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 27, 2017 and January 29, 2016 . See Note 7, 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. The Company recognized insignificant net foreign exchange transaction losses in Fiscal 2016, and losses of $5.7 million and $4.7 million in Fiscal 2015 and Fiscal 2014 , respectively, in the accompanying Consolidated and Combined Statements of Operations . |
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. Net revenues 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 Balance Sheets. Reserves for sales returns and allowances consisted of the following: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Beginning balance $ 12,605 $ 13,868 $ 13,805 Provision 143,410 166,579 187,000 Write-offs (144,221 ) (167,842 ) (186,937 ) Ending balance $ 11,794 $ 12,605 $ 13,868 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 three 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 $2.3 million , $2.2 million and $1.7 million in Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. |
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’ SYW program. The expenses for this program are recorded in Cost of sales, as described in |
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 | Product Recall In Fiscal 2014, the Company recorded a $4.7 million accrual related to a recall of selected styles of children’s sleepwear that did not meet the federal flammability standard. In Fiscal 2016 and Fiscal 2015 , $0.2 million and $3.4 million , respectively, was reversed due to customer return rates for the recalled products being lower than estimated despite the efforts by the Company to contact impacted customers. This reversal was recorded in Other operating income (expense), net. |
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. 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 Operations. See Note 9—Income Taxes. The Company performed an evaluation over its deferred tax assets and determined that a valuation allowance is not considered necessary. Without the $173.0 million and $98.3 million non-cash impairment charges to the indefinite-lived intangible asset in Fiscal 2016 and Fiscal 2015, respectively, the Company would not be in a cumulative loss position. 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. For purposes of the Combined Financial Statements, the income tax provision represents the tax attributable to these operations as if the Company were required to file separate tax returns. Sears Holdings paid all United States federal, state and local income taxes attributable to the Lands’ End business prior to the Separation and the related taxes payable and tax payments were reflected directly in Net parent company investment in the Balance Sheets. Prior to the Separation, income 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. |
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 and were not material in Fiscal 2014 prior to the Separation. 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 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 $3.3 million , $3.3 million and $3.4 million for Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , respectively. |
Other Comprehensive Income (Loss) | Other Comprehensive Loss Other comprehensive 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 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 ASC. |
New Accounting Pronouncements | New Accounting Pronouncements Simplifying the Measurement of Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . Under this ASU, non-LIFO inventory will be measured at the lower of cost and net realizable value, eliminating the options that currently exist for market valuation. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. No other changes were made to the current guidance on inventory measurement. This guidance was effective for Lands' End in the First Quarter 2016 and only applies to our international inventory as United States inventory is valued using LIFO. The adoption of this guidance did not have a material impact on the Company's Consolidated and Combined Financial Statements. Customer's Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued ASU 2015-05, Customers' Accounting for Fees Paid in a Cloud Computing Arrangement , which clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software under ASC 350-40. This guidance was effective for Lands' End in the First Quarter 2016. The adoption of this guidance did not 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 changed the required presentation of debt issuance costs from an asset on the balance sheet to a deduction from the related debt liability. This guidance was adopted by the Company during First Quarter 2016. See Note 4 , Debt, for further discussion. 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 was deferred by ASU 2015-14, Revenue from Contracts with Customers , issued by the FASB in August 2015, and will be effective for Lands' End in the first quarter of its fiscal year ending February 1, 2019. Subsequently, the FASB has also issued ASUs which clarify the guidance. The Company is currently assessing the impact of adopting ASU 2014-09 on our revenue recognition practices. We have organized a team and based upon our preliminary assessment believe it could impact the timing of recognition of revenues from gift cards and revenues from our Direct segment. The Company expects to finalize its evaluation in Fiscal 2017 and will provide updates on its progress in future filings. Compensation - Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation , which simplifies the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. This guidance will be effective for Lands' End in the first quarter of its fiscal year ending February 2, 2018. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated and Combined Financial Statements. Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . This update clarifies when it is acceptable to recognize the unredeemed portion of prepaid gift cards into income. This guidance will be effective for Lands' End in the first quarter of its fiscal year ending February 1, 2019. 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. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . This update clarifies issues to reduce the current and potential future diversity in practice of the classification of certain cash receipts and cash payments within the statement of cash flows. This guidance will be effective for Lands' End in the first quarter of its fiscal year ending February 1, 2019. 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. Leases In February 2016, the FASB issued ASU 2016-02, Leases, which will replace the existing guidance in ASC 840, Leases . This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. This guidance will be effective for Lands' End in the first quarter of its fiscal year ending January 31, 2020. 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. Intangibles - Goodwill and Other In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other , which simplifies the test for goodwill impairment. This update removes the second step of the goodwill impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This guidance will be effective for Lands' End for its fiscal year ending January 29, 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. 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. Reclassifications In First Quarter 2016, the Company adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changed the required presentation of debt issuance costs from an asset on the balance sheet to a deduction from related debt liability. As a result of the adoption, the Company reclassified debt issuance costs from Prepaid expenses and other current assets and Other assets as of January 29, 2016 to Long-term debt. This reclassification had no effect on the Consolidated Statements of Operations, Comprehensive Operations, Stockholders’ Equity or Cash Flows. See Note 3, Debt, for further discussion. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
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 2016 Fiscal 2015 Fiscal 2014 Beginning balance $ 626 $ 688 $ 1,031 Provision 281 286 371 Write-offs (328 ) (348 ) (714 ) Ending balance $ 579 $ 626 $ 688 |
Summary of property and equipment, net | Property and equipment, net consisted of the following: (in thousands) Asset Lives January 27, 2017 January 29, 2016 Land — $ 3,466 $ 3,509 Buildings and improvements 15-30 98,213 99,957 Furniture, fixtures and equipment 3-10 78,563 78,864 Computer hardware and software 3-5 82,491 75,170 Leasehold improvements 3-7 11,176 12,841 Assets in development 34,882 17,020 Gross property and equipment 308,791 287,361 Accumulated depreciation (185,955 ) (177,530 ) Total property and equipment, net $ 122,836 $ 109,831 |
Schedule of sales returns and allowances reserve | Reserves for sales returns and allowances consisted of the following: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Beginning balance $ 12,605 $ 13,868 $ 13,805 Provision 143,410 166,579 187,000 Write-offs (144,221 ) (167,842 ) (186,937 ) Ending balance $ 11,794 $ 12,605 $ 13,868 |
Schedule of accumulated other comprehensive income (loss) | (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Beginning balance: Accumulated other comprehensive loss (net of tax of $5,053, $3,931 and $1,211, respectively) $ (9,384 ) $ (7,298 ) $ (1,995 ) Other comprehensive loss Foreign currency translation adjustments (net of tax of $1,638, $1,122, and $2,720, respectively) (3,042 ) (2,086 ) (5,303 ) Ending balance: Accumulated other comprehensive loss (net of tax of $6,691, $5,053, and $3,931, respectively) $ (12,426 ) $ (9,384 ) $ (7,298 ) |
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 2016 Fiscal 2015 Fiscal 2014 Net (loss) income $ (109,782 ) $ (19,548 ) $ 73,799 Basic weighted average shares outstanding 32,021 31,979 31,957 Dilutive effect of stock awards — — 59 Diluted weighted average shares outstanding 32,021 31,979 32,016 Basic (loss) earnings per share $ (3.43 ) $ (0.61 ) $ 2.31 Diluted (loss) earnings per share $ (3.43 ) $ (0.61 ) $ 2.31 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | The Company’s (loss) income before income taxes in the United States and in foreign jurisdictions is as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 (Loss) income before income taxes: United States $ (174,461 ) $ (31,206 ) $ 114,772 Foreign (4,419 ) 1,967 5,785 Total (loss) income before income taxes $ (178,880 ) $ (29,239 ) $ 120,557 |
Schedule of components of the provision for income taxes | The components of the (benefit from) provision for income taxes are as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 United States $ (70,316 ) $ (9,737 ) $ 44,503 Foreign 1,218 46 2,255 Total (benefit) provision $ (69,098 ) $ (9,691 ) $ 46,758 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Current: Federal $ (2,834 ) $ 10,524 $ 20,902 State (229 ) 2,409 6,361 Foreign 1,218 46 1,950 Total current (1,845 ) 12,979 29,213 Deferred: Federal (62,645 ) (20,956 ) 14,579 State (4,608 ) (1,714 ) 2,661 Foreign — — 305 Total deferred (67,253 ) (22,670 ) 17,545 Total (benefit) provision $ (69,098 ) $ (9,691 ) $ 46,758 |
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 2016 Fiscal 2015 Fiscal 2014 Tax at statutory federal tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.7 % (1.6 )% 2.9 % Other, net 0.9 % (0.3 )% 0.9 % Total 38.6 % 33.1 % 38.8 % |
Summary of deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following: (in thousands) January 27, 2017 January 29, 2016 Deferred tax assets: Deferred revenue $ 4,903 $ 5,349 Legal and other reserves 1,892 1,839 Deferred compensation 4,653 3,199 Reserve for returns 3,578 4,911 Inventory 7,817 4,231 Currency translation adjustment - foreign subsidiaries 6,691 5,053 Other 8,197 6,935 Total deferred tax assets 37,731 31,517 Deferred tax liabilities: Intangible assets 96,812 161,503 LIFO reserve 24,601 20,153 Unremitted foreign earnings 5,208 5,722 Catalog marketing 1,577 1,390 Total deferred tax liabilities 128,198 188,768 Net deferred tax liability $ 90,467 $ 157,251 |
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 2016 Fiscal 2015 Fiscal 2014 Gross UTB balance at beginning of period $ 8,311 $ 9,082 $ 8,718 Tax positions related to the current period—gross increases 120 116 364 Tax positions related to the prior periods—gross decreases (1,530 ) (697 ) — Settlements — (190 ) — Gross UTB balance at end of period $ 6,901 $ 8,311 $ 9,082 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
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 11, Related Party Agreements and Transactions ) as of January 27, 2017 are as follows for the fiscal years ending (in thousands): 2017 $ 27,881 2018 18,663 2019 12,199 2020 2,180 2021 1,574 Thereafter 2,721 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
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 Operations : (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Deferred Awards $ 1,599 $ 1,534 $ 235 Performance Awards 631 861 1,883 Total stock-based compensation expense $ 2,230 $ 2,395 $ 2,118 |
Summary of deferred award activity | Deferred Awards (in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Unvested Deferred Awards, as of January 30, 2015 44 $ 28.01 Granted 165 31.20 Vested (9 ) 28.02 Forfeited (25 ) 28.74 Unvested Deferred Awards, as of January 29, 2016 175 30.87 Granted 242 23.93 Vested (27 ) 33.53 Forfeited (138 ) 30.05 Unvested Deferred Awards, as of January 27, 2017 252 24.42 |
Summary of performance share award activity | Performance Awards (in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Unvested Performance Awards, as of January 30, 2015 197 $ 28.01 Granted 19 21.94 Vested (43 ) 27.86 Forfeited (64 ) 28.34 Unvested Performance Awards, as of January 29, 2016 109 26.81 Vested (30 ) 27.84 Forfeited (10 ) 26.73 Unvested Performance Awards, as of January 27, 2017 69 26.38 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Debt Disclosure [Abstract] | |
Company's Debt | The Company's debt consisted of the following: January 27, 2017 January 29, 2016 (in thousands) Principal Amount Interest Rate Principal Amount Interest Rate Term Loan Facility, maturing April 4, 2021 $ 500,838 4.25 % $ 505,988 4.25 % ABL Facility, maturing April 4, 2019 — — % — — % 500,838 505,988 Less: current maturities in Other current liabilities 5,150 5,150 Less: unamortized debt issuance costs 5,645 7,000 Long-term debt, net $ 490,043 $ 493,838 |
Schedule of aggregate scheduled maturities | The Company’s aggregate scheduled maturities of the Term Loan Facility as of January 27, 2017 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 480,238 $ 500,838 |
Company's borrowing availability under ABL Facility | The following table summarizes the Company's borrowing availability under the ABL Facility: (in thousands) January 27, 2017 January 29, 2016 ABL maximum borrowing $ 175,000 $ 175,000 Outstanding letters of credit 19,705 24,311 Borrowing availability under ABL $ 155,295 $ 150,689 |
Fair Value of Financial Asset27
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
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 Balance Sheets are as follows: January 27, 2017 January 29, 2016 (in thousands) Carrying Amount Fair Value Carrying Fair Long-term debt, including short-term portion $ 500,838 $ 379,385 $ 505,988 $ 418,073 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | The following summarizes goodwill and intangible assets: (in thousands) January 27, 2017 January 29, 2016 Indefinite-lived intangible asset: Trade name $ 430,000 $ 528,300 Impairments (173,000 ) (98,300 ) Total intangible asset, net $ 257,000 $ 430,000 Goodwill $ 110,000 $ 110,000 Annual amortization expense (in thousands) Fiscal 2016 — Fiscal 2015 412 Fiscal 2014 2,630 |
Related Party Agreements and 29
Related Party Agreements and Transactions (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
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 2016 Fiscal 2015 Fiscal 2014 Rent, CAM and occupancy costs $ 24,727 $ 25,239 $ 26,605 Retail services, store labor 24,052 26,773 31,087 Financial services and payment processing 2,834 2,792 3,034 Supply chain costs 979 985 1,044 Total expenses $ 52,592 $ 55,789 $ 61,770 Number of Lands’ End Shops at Sears at period end (1) 216 227 236 (1) During Fiscal 2016 , Fiscal 2015 and Fiscal 2014 , 11 , 9 and 38 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 2016 Fiscal 2015 Fiscal 2014 Call center services $ 2,124 $ 2,344 $ 2,346 Lands' End business outfitters revenue 1,574 1,398 1,995 Credit card revenue 1,147 1,274 1,519 Royalty income 221 220 79 Gift card revenue (expense) (32 ) (33 ) 239 Total $ 5,034 $ 5,203 $ 6,178 Related party costs charged by Sears Holdings to the Company for general corporate services are as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Sourcing $ 10,878 $ 9,609 $ 8,986 Shop Your Way 2,301 2,896 4,202 Shared services 192 484 559 Co-location and services — — 15 Total expenses $ 13,371 $ 12,989 $ 13,762 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Segment Reporting [Abstract] | |
Schedule of financial information by segment | is aggregated by product category in the following table: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Net revenue: Apparel $ 1,086,439 $ 1,156,047 $ 1,248,847 Non-apparel 168,945 183,073 220,385 Services and other 80,376 80,658 86,121 Total Net revenue $ 1,335,760 $ 1,419,778 $ 1,555,353 Financial information by segment is presented as follows: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Net revenue: Direct $ 1,149,149 $ 1,214,993 $ 1,320,642 Retail 186,390 204,566 234,632 Corporate/other 221 219 79 Total Net revenue $ 1,335,760 $ 1,419,778 $ 1,555,353 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Adjusted EBITDA: Direct $ 78,582 $ 141,936 $ 192,763 Retail (5,560 ) (520 ) 7,161 Corporate/other (33,190 ) (34,128 ) (35,626 ) Total adjusted EBITDA $ 39,832 $ 107,288 $ 164,298 Loss on disposal of property and equipment 672 44 239 Product recall (212 ) (3,371 ) 4,713 Depreciation and amortization 19,003 17,399 19,703 Intangible asset impairment 173,000 98,300 — Operating (loss) income $ (152,631 ) $ (5,084 ) $ 139,643 Interest expense 24,630 24,826 20,494 Other income, net 1,619 (671 ) (1,408 ) Income tax (benefit) expense (69,098 ) (9,691 ) 46,758 Net (loss) income $ (109,782 ) $ (19,548 ) $ 73,799 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Depreciation and amortization: Direct $ 15,877 $ 13,916 $ 15,640 Retail 1,674 2,029 2,618 Corporate/other 1,452 1,454 1,445 Total Depreciation and amortization $ 19,003 $ 17,399 $ 19,703 (in thousands) January 27, 2017 January 29, 2016 Total assets: Direct $ 805,201 $ 953,502 Retail 69,792 69,321 Corporate/other 239,398 258,703 Total assets $ 1,114,391 $ 1,281,526 (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Capital expenditures: Direct $ 32,590 $ 21,630 $ 15,160 Retail 635 318 1,004 Corporate/other 94 276 444 Total capital expenditures $ 33,319 $ 22,224 $ 16,608 |
Summary of revenues based by geographic region | The following presents summarized geographical information: (in thousands) Fiscal 2016 Fiscal 2015 Fiscal 2014 Net revenue: United States $ 1,143,529 $ 1,211,226 $ 1,309,252 Europe 125,410 136,890 159,796 Asia 50,030 51,808 56,014 Other foreign 16,791 19,854 30,291 Total Net revenue $ 1,335,760 $ 1,419,778 $ 1,555,353 |
Summary of property and equipment by geographic region | (in thousands) January 27, 2017 January 29, 2016 Property and equipment, net: United States $ 113,045 $ 98,153 Europe 9,075 10,980 Asia 716 698 Total Property and equipment, net $ 122,836 $ 109,831 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other current liabilities | Other current liabilities consisted of the following: (in thousands) January 27, 2017 January 29, 2016 Deferred gift card revenue $ 19,999 $ 20,802 Accrued employee compensation and benefits 13,165 12,785 Reserve for sales returns and allowances 11,794 12,605 Deferred revenue 10,660 11,097 Accrued property, sales and other taxes 7,578 7,536 Short-term portion of long-term debt 5,150 5,150 Product recall — 207 Other 18,100 13,810 Total other current liabilities $ 86,446 $ 83,992 |
Quarterly Financial Data (Una32
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | Fiscal 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except share data) $’s % Net Sales $’s % Net Sales $’s % Net Sales $’s % Net Sales Net revenue $ 273,433 100.0 % $ 292,010 100.0 % $ 311,476 100.0 % $ 458,841 100.0 % Gross profit 129,670 47.4 % 136,152 46.6 % 133,651 42.9 % 176,935 38.6 % Operating income (loss) (2) (3,486 ) (1.3 )% 2,712 0.9 % (3,423 ) (1.1 )% (148,434 ) (32.3 )% Net loss (2) $ (5,759 ) (2.1 )% $ (1,980 ) (0.7 )% $ (7,222 ) (2.3 )% $ (94,821 ) (20.7 )% Basic loss per common share (1) $ (0.18 ) $ (0.06 ) $ (0.23 ) $ (2.96 ) Diluted loss per common share (1) $ (0.18 ) $ (0.06 ) $ (0.23 ) $ (2.96 ) Fiscal 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except share data) $’s Net Sales $’s Net Sales $’s Net Sales $’s Net Sales Net revenue $ 299,387 100.0 % $ 312,414 100.0 % $ 334,434 100.0 % $ 473,543 100.0 % Gross profit 146,564 49.0 % 144,500 46.3 % 162,415 48.6 % 199,110 42.0 % Operating income (3) 8,495 2.8 % 17,918 5.7 % 23,297 7.0 % (54,794 ) (11.6 )% Net income (loss) (3) $ 1,724 0.6 % $ 7,461 2.4 % $ 10,725 3.2 % $ (39,458 ) (8.3 )% Basic earnings (loss) per common share (1) $ 0.05 $ 0.23 $ 0.34 $ (1.23 ) Diluted earnings (loss) per common share (1) $ 0.05 $ 0.23 $ 0.33 $ (1.23 ) (1) The sum of the quarterly earnings per share—basic and diluted amounts may not equal the fiscal year amount due to rounding. (2) Fourth Quarter 2016 Net loss includes an impairment charge of $173.0 million related to the non-cash write-down of our trade name indefinite-lived asset, Lands' End. (3) Fourth Quarter 2015 Net loss includes an impairment charge of $98.3 million related to the non-cash write-down of our trade name indefinite-lived asset, Lands' End. |
Background and Basis of Prese33
Background and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | Apr. 04, 2014USD ($)$ / sharesshares | Jan. 27, 2017USD ($)$ / sharesshares | Jan. 29, 2016USD ($)$ / sharesshares | Jan. 30, 2015USD ($) | Mar. 14, 2014 |
Class of Stock | |||||
Dividends paid prior to distribution | $ 0 | $ 0 | $ 500,000 | ||
Shares outstanding | shares | 31,956,521 | 32,029,359 | 31,991,668 | ||
Par value of stock | $ / shares | $ 0.01 | $ 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 Accoun34
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | Apr. 04, 2014 | Feb. 01, 2013 | |
Significant Accounting Policies [Line Items} | |||||
Product recall | $ (212,000) | $ (3,371,000) | $ 4,713,000 | ||
Allowance for doubtful accounts receivable | 579,000 | 626,000 | 688,000 | $ 1,031,000 | |
Reserve for excess and obsolete inventory | $ 20,100,000 | 15,500,000 | |||
Advertising barter transactions | 3.8 | ||||
Trade credits receivable, current | $ 1,000,000 | ||||
Trade credits receivable, noncurrent | 3,600,000 | ||||
Unamortized marketing costs | 12,700,000 | 11,500,000 | |||
Marketing expenses | 193,200,000 | 199,000,000 | 208,000,000 | ||
Accounts receivable, net | 39,284,000 | 32,061,000 | |||
Bad debt expense | 281,000 | 286,000 | 371,000 | ||
Foreign currency translation adjustments | 0 | 5,700,000 | 4,700,000 | ||
Intangible asset impairment | 173,000,000 | 98,300,000 | 0 | ||
Total self insurance expenses | 18,200,000 | 16,200,000 | 14,100,000 | ||
401(k) plan expense | 3,300,000 | 3,300,000 | 3,400,000 | ||
ABL Facility [Member] | Line of Credit | |||||
Significant Accounting Policies [Line Items} | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 175,000,000 | $ 175,000,000 | |||
ABL Facility [Member] | Domestic Letters of Credit | |||||
Significant Accounting Policies [Line Items} | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0 | $ 0 | 70,000,000 | ||
ABL Facility [Member] | Foreign Letters of Credit | |||||
Significant Accounting Policies [Line Items} | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000,000 | ||||
United Kingdom Subsidiary | ABL Facility [Member] | Line of Credit | |||||
Significant Accounting Policies [Line Items} | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||
United States | |||||
Significant Accounting Policies [Line Items} | |||||
Percentage of LIFO inventory | 90.00% | 88.00% | |||
Sears Holdings Corporation | |||||
Significant Accounting Policies [Line Items} | |||||
Selling and administrative expenses allocated from former parent | $ 52,900,000 | $ 56,600,000 | $ 62,300,000 | ||
Postretirement benefit liability | 1,500,000 | ||||
Accounts Receivable, Net | Sears Holdings Corporation | |||||
Significant Accounting Policies [Line Items} | |||||
Accounts receivable, net, due from related party | $ 3,700,000 | $ 3,900,000 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 626 | $ 688 | |
Provision | 281 | 286 | $ 371 |
Write-offs | (328) | (348) | (714) |
Ending balance | $ 579 | $ 626 | $ 688 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Summary of Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Accounting Policies [Abstract] | |||
Depreciation and amortization | $ 19,003 | $ 17,399 | $ 19,703 |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 308,791 | 287,361 | |
Accumulated depreciation | (185,955) | (177,530) | |
Total property and equipment, net | 122,836 | 109,831 | |
Depreciation expense | 17,000 | $ 17,100 | |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 3,466 | 3,509 | |
Buildings and improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | $ 98,213 | 99,957 | |
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 | $ 78,563 | 78,864 | |
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 | $ 82,491 | 75,170 | |
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 | $ 11,176 | 12,841 | |
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 | ||
Construction in Progress [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | $ 34,882 | $ 17,020 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Revenue recognized from gift card breakage | $ 2,300 | $ 2,200 | $ 1,700 |
Sales returns and allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 12,605 | 13,868 | 13,805 |
Provision | 143,410 | 166,579 | 187,000 |
Write-offs | (144,221) | (167,842) | (186,937) |
Ending balance | $ 11,794 | $ 12,605 | $ 13,868 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Summary of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance: Accumulated other comprehensive loss | $ (9,384) | $ (7,298) | $ (1,995) |
Other comprehensive loss | |||
Foreign currency translation adjustments (net of tax of $1,638, $1,122, and $2,720, respectively) | (3,042) | (2,086) | (5,303) |
Ending balance: Accumulated other comprehensive loss | (12,426) | (9,384) | (7,298) |
Accumulated other comprehensive loss, tax, beginning of period | 5,053 | 3,931 | 1,211 |
Foreign currency translation adjustments, tax | 1,638 | 1,122 | 2,720 |
Accumulated other comprehensive loss, tax, end of period | $ 6,691 | $ 5,053 | $ 3,931 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Summary of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May 01, 2015 | Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income | $ (94,821) | $ (7,222) | $ (1,980) | $ (5,759) | $ (39,458) | $ 10,725 | $ 7,461 | $ 1,724 | $ (109,782) | $ (19,548) | $ 73,799 |
Basic weighted average shares outstanding | 32,021,000 | 31,979,000 | 31,957,000 | ||||||||
Dilutive effect of stock awards (shares) | 0 | 0 | 59,000 | ||||||||
Diluted weighted average shares outstanding | 32,021,000 | 31,979,000 | 32,016,000 | ||||||||
Basic earnings per share (in dollars per share) | $ (2.96) | $ (0.23) | $ (0.06) | $ (0.18) | $ (3.43) | $ (0.61) | $ 2.31 | ||||
Diluted earnings per share (in dollars per share) | $ (2.96) | $ (0.23) | $ (0.06) | $ (0.18) | $ (1.23) | $ 0.33 | $ 0.23 | $ 0.05 | $ (3.43) | $ (0.61) | $ 2.31 |
Antidilutive securities excluded from calculation (shares) | 163,333 | 41,994 | 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | Apr. 04, 2014 | Feb. 01, 2013 |
Income Tax Examination [Line Items] | |||||
Unrecognized tax benefits | $ 6,901 | $ 8,311 | $ 9,082 | $ 6,500 | $ 8,718 |
Unrecognized tax benefits, if recognized, would impact effective tax rate | 4,500 | ||||
Amount of interest and penalties recognized | 4,900 | 5,700 | |||
Amount of interest and penalties recognized, net of federal benefit | 3,200 | 3,700 | |||
Deferred tax assets | 37,731 | 31,517 | |||
Other Liabilities | |||||
Income Tax Examination [Line Items] | |||||
Tax reserve for uncertain tax position | 13,700 | ||||
Sears Holdings Corporation | Deferred Tax Liabilities | |||||
Income Tax Examination [Line Items] | |||||
Deferred tax assets | 30,400 | ||||
Sears Holdings Corporation | Other Assets | |||||
Income Tax Examination [Line Items] | |||||
Indemnification receivable, uncertain tax positions | $ 11,400 | $ 13,700 | $ 13,700 |
Income Taxes Income Taxes - Sum
Income Taxes Income Taxes - Summary of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
(Loss) income before income taxes: | |||
United States | $ (174,461) | $ (31,206) | $ 114,772 |
Foreign | (4,419) | 1,967 | 5,785 |
(Loss) income before income taxes | $ (178,880) | $ (29,239) | $ 120,557 |
Income Taxes - Summary the Comp
Income Taxes - Summary the Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, by Jurisdiction [Abstract] | |||
United States | $ (70,316) | $ (9,737) | $ 44,503 |
Foreign | 1,218 | 46 | 2,255 |
Total provision | (69,098) | (9,691) | 46,758 |
Current: | |||
Federal | (2,834) | 10,524 | 20,902 |
State | (229) | 2,409 | 6,361 |
Foreign | 1,218 | 46 | 1,950 |
Total current | (1,845) | 12,979 | 29,213 |
Deferred: | |||
Federal | (62,645) | (20,956) | 14,579 |
State | (4,608) | (1,714) | 2,661 |
Foreign | 0 | 0 | 305 |
Total deferred | $ (67,253) | $ (22,670) | $ 17,545 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
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 | 2.70% | (1.60%) | 2.90% |
Other, net | 0.90% | (0.30%) | 0.90% |
Total | 38.60% | 33.10% | 38.80% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 27, 2017 | Jan. 29, 2016 |
Deferred tax assets: | ||
Deferred revenue | $ 4,903 | $ 5,349 |
Legal and other reserves | 1,892 | 1,839 |
Deferred compensation | 4,653 | 3,199 |
Reserve for returns | 3,578 | 4,911 |
Inventory | 7,817 | 4,231 |
Currency translation adjustment - foreign subsidiaries | 6,691 | 5,053 |
Other | 8,197 | 6,935 |
Total deferred tax assets | 37,731 | 31,517 |
Deferred tax liabilities: | ||
Intangible assets | 96,812 | 161,503 |
LIFO reserve | 24,601 | 20,153 |
Unremitted foreign earnings | 5,208 | 5,722 |
Catalog marketing | 1,577 | 1,390 |
Total deferred tax liabilities | 128,198 | 188,768 |
Net deferred tax liability | $ 90,467 | $ 157,251 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross UTB balance at beginning of period | $ 8,311 | $ 9,082 | |
Tax positions related to the current period—gross increases | 120 | 116 | $ 364 |
Tax positions related to the prior periods—gross decreases | (1,530) | (697) | 0 |
Settlements | 0 | (190) | 0 |
Gross UTB balance at end of period | 6,901 | $ 8,311 | $ 9,082 |
Other Noncurrent Liabilities [Member] | |||
Income Tax Contingency [Line Items] | |||
Liability for Uncertainty in Income Taxes, Noncurrent | $ 13,700 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017USD ($) | Jan. 29, 2016USD ($) | Jan. 30, 2015USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Number of store locations the Company leases store space | 230 | ||
Number of store locations the Company owns | 2 | ||
Rental expense under operating leases | $ 30,600 | $ 31,100 | $ 32,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,015 | 27,881 | ||
2,016 | 18,663 | ||
2,017 | 12,199 | ||
2,018 | 2,180 | ||
2,019 | 1,574 | ||
Thereafter | $ 2,721 | ||
Lands' End Inlet Store locations | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Number of store locations the Company leases store space | 12 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ in Millions | 12 Months Ended |
Jan. 27, 2017USD ($) | |
Performance Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Compensation expense not yet recognized | $ 0.1 |
Compensation expense not yet recognized, recognition period | 3 months 18 days |
Deferred Awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Vesting period | 3 years |
Compensation expense not yet recognized | $ 4.1 |
Compensation expense not yet recognized, recognition period | 1 year 8 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% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Deferred Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 18 days | ||
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 months 18 days | ||
Selling and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | $ 2,230 | $ 2,395 | $ 2,118 |
Selling and administrative expense | Deferred Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | 1,599 | 1,534 | 235 |
Selling and administrative expense | Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | $ 631 | $ 861 | $ 1,883 |
Stock-Based Compensation - Sc49
Stock-Based Compensation - Schedule of Unvested Stock Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Jan. 27, 2017 | Jan. 29, 2016 | |
Restricted Stock Units (RSUs) [Member] | ||
Number of Shares [Roll Forward] | ||
Unvested awards, beginning of period (in shares) | 0 | 0 |
Granted (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | 0 |
Unvested awards, end of period (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Unvested awards, beginning of period (in dollars per share) | $ 30.87 | $ 28.01 |
Granted (in dollars per share) | 23.93 | 31.20 |
Forfeited (in dollars per share) | 30.05 | 28.74 |
Unvested awards, end of period (in dollars per share) | $ 24.42 | $ 30.87 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 33.53 | $ 28.02 |
Performance Awards | ||
Number of Shares [Roll Forward] | ||
Unvested awards, beginning of period (in shares) | 0 | 0 |
Granted (in shares) | 0 | |
Forfeited (in shares) | 0 | 0 |
Unvested awards, end of period (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Unvested awards, beginning of period (in dollars per share) | $ 26.81 | $ 28.01 |
Granted (in dollars per share) | 21.94 | |
Forfeited (in dollars per share) | 26.73 | 28.34 |
Unvested awards, end of period (in dollars per share) | $ 26.38 | $ 26.81 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 27.86 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 27.84 |
Debt (Details)
Debt (Details) | Apr. 04, 2014USD ($) | Jan. 27, 2017USD ($) | Jan. 29, 2016USD ($) | Jan. 30, 2015USD ($) |
Line of Credit Facility | ||||
Debt Issuance Costs, Current, Net | $ 1,400,000 | |||
Dividends paid prior to distribution | $ 0 | 0 | $ 500,000,000 | |
Debt issuance costs | $ 0 | $ 0 | $ 11,433,000 | |
Line of Credit Facility, Interest Rate at Period End | 0.00% | 0.00% | ||
Debt Issuance Costs, Noncurrent, Net | $ 5,600,000 | |||
ABL Facility [Member] | Line of Credit | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | $ 175,000,000 | ||
Available borrowing under line of credit facility | 155,295,000 | 150,689,000 | ||
Outstanding letters of credit | 19,705,000 | 24,311,000 | ||
ABL Facility [Member] | Domestic Letters of Credit | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 70,000,000 | $ 0 | 0 | |
ABL Facility [Member] | Foreign Letters of Credit | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
ABL Facility [Member] | 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 | $ 505,988,000 | ||
Debt issuance costs | $ 11,400,000 | |||
Line of credit facility, amortization rate | 1.00% | |||
United Kingdom Subsidiary | ABL Facility [Member] | Line of Credit | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||
Minimum | ABL Facility [Member] | 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 [Member] | Secured Debt | ||||
Line of Credit Facility | ||||
Line of credit facility, unused commitment fee percentage | 0.375% | |||
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% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ABL Facility [Member] | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 1.50% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ABL Facility [Member] | 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 [Member] | Secured Debt | ||||
Line of Credit Facility | ||||
Spread on variable rate | 0.50% | |||
Base Rate | Maximum | ABL Facility [Member] | 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 Ma
Debt - Schedule of Aggregate Maturities (Details) - USD ($) $ in Thousands | Jan. 27, 2017 | Jan. 29, 2016 |
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 | 480,238 | |
Total aggregate maturities | $ 500,838 | $ 505,988 |
Debt Borrowing availability (De
Debt Borrowing availability (Details) - ABL Facility [Member] - Line of Credit - USD ($) | Jan. 27, 2017 | Jan. 29, 2016 | Apr. 04, 2014 |
Line of Credit Facility | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | $ 175,000,000 | |
Outstanding letters of credit | 19,705,000 | $ 24,311,000 | |
Available borrowing under line of credit facility | $ 155,295,000 | $ 150,689,000 |
Debt Long Term Debt (Details)
Debt Long Term Debt (Details) | Apr. 04, 2014USD ($) | Jan. 27, 2017USD ($) | Jan. 29, 2016USD ($) |
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |
Line of Credit Facility, Interest Rate at Period End | 0.00% | 0.00% | |
Short-term portion of long-term debt | $ 5,150,000 | $ 5,150,000 | |
Debt Issuance Costs, Net | 5,645,000 | 7,000,000 | |
Long-term debt, net | 490,043,000 | 493,838,000 | |
Long-term Debt, including short-term portion | 500,838,000 | 505,988,000 | |
Secured Debt | ABL Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Covenant Terms, Minimum Fixed Charge Coverage Ratio | 1 | ||
Secured Debt | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Secured Debt | $ 515,000,000 | 505,988,000 | |
Domestic Letters of Credit | ABL Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 | 0 | $ 0 |
Carrying Amount | Fair Value, Inputs, Level 2 [Member] | Secured Debt | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Secured Debt | $ 500,838,000 | ||
Minimum | Secured Debt | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Mandatory Prepayment Terms, Percentage of Borrower's Excess Cash Flow | 0.00% | ||
Maximum | Secured Debt | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Mandatory Prepayment Terms, Percentage of Borrower's Excess Cash Flow | 50.00% |
Debt ABL Facility (Details)
Debt ABL Facility (Details) - USD ($) | Jan. 27, 2017 | Apr. 04, 2014 |
Line of Credit | ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | $ 175,000,000 |
Fair Value of Financial Asset55
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 27, 2017 | Jan. 29, 2016 |
Restricted Cash | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash | $ 3.3 | $ 3.3 |
Fair Value of Financial Asset56
Fair Value of Financial Assets and Liabilities - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 27, 2017 | Jan. 29, 2016 | Apr. 04, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term Debt, including short-term portion | $ 500,838 | $ 505,988 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term Debt, including short-term portion | 379,385 | 418,073 | |
Term Loan Facility [Member] | Secured Debt [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured Debt | $ 505,988 | $ 515,000 | |
Term Loan Facility [Member] | Secured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured Debt | $ 500,838 |
Fair Value of Financial Asset57
Fair Value of Financial Assets and Liabilities Intangible Impairment Loss - unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Fair Value Disclosures - Impairment Loss - Unobservable Inputs [Abstract] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 173,000 | $ 98,300 | $ 0 |
Intangible asset, net | $ 257,000 | $ 430,000 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible asset impairment | $ 173,000 | $ 98,300 | $ 0 |
Impairment of goodwill or intangible assets | $ 0 | ||
Fair value of reporting unit exceeded carrying value | 17.10% | 23.80% | 163.30% |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ (173,000) | $ (98,300) | $ 0 |
Total intangible asset, net | 257,000 | 430,000 | |
Goodwill | 110,000 | 110,000 | |
Trade Names [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, Gross Carrying Amount | $ 430,000 | $ 528,300 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Annual amortization expense | $ 0 | $ 412,000 | $ 2,630,000 |
Related Party Agreements and 61
Related Party Agreements and Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | Apr. 04, 2014 | |
Related Party Transaction | ||||
Related Party Transactions, sale of debt | $ 10,700 | |||
Related Party Transaction, discount on sale of debt | 2,700 | |||
Sears Holdings Corporation | ||||
Related Party Transaction | ||||
Related party revenue, net | 5,034 | $ 5,203 | $ 6,178 | |
Sears Holdings Corporation | Accounts Receivable, Net | ||||
Related Party Transaction | ||||
Accounts receivable, net, due from related party | 3,700 | 3,900 | ||
Sears Holdings Corporation | Accounts payable | ||||
Related Party Transaction | ||||
Accounts payable, due to related party | 3,100 | 2,700 | ||
Sears Holdings Corporation | Other Assets | ||||
Related Party Transaction | ||||
Indemnification receivable, uncertain tax positions | 11,400 | 13,700 | $ 13,700 | |
Merchandise sales and services, net | ||||
Related Party Transaction | ||||
Call Center Service Revenue | $ 8,200 | $ 8,600 | $ 8,100 |
Related Party Agreements and 62
Related Party Agreements and Transactions - Schedule of Related Party Costs (Details) - Sears Holdings Corporation $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017USD ($)store_location | Jan. 29, 2016USD ($)store_location | Jan. 30, 2015USD ($)store_location | |
Related Party Transaction | |||
Number of Lands’ End Shops at Sears at period end | 216 | 227 | 236 |
Number of Lands' End Shops at Sears closed in period | store_location | 11 | 9 | 38 |
Retail services, store labor | |||
Related Party Transaction | |||
Related party expenses, net | $ 24,727 | $ 25,239 | $ 26,605 |
(in thousands) | |||
Related Party Transaction | |||
Related party expenses, net | 24,052 | 26,773 | 31,087 |
Supply chain costs | |||
Related Party Transaction | |||
Related party expenses, net | 979 | 985 | 1,044 |
Financial services and payment processing | |||
Related Party Transaction | |||
Related party expenses, net | 2,834 | 2,792 | 3,034 |
Total expenses | |||
Related Party Transaction | |||
Related party expenses, net | $ 52,592 | $ 55,789 | $ 61,770 |
Related Party Agreements and 63
Related Party Agreements and Transactions - Details of General Corporate Services (Details) - Sears Holdings Corporation - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Sourcing | |||
Related Party Transaction | |||
Related party expenses, net | $ 10,878 | $ 9,609 | $ 8,986 |
Shop Your Way | |||
Related Party Transaction | |||
Related party expenses, net | 2,301 | 2,896 | 4,202 |
Shared services | |||
Related Party Transaction | |||
Related party expenses, net | 192 | 484 | 559 |
Co-location and services | |||
Related Party Transaction | |||
Related party expenses, net | 0 | 0 | 15 |
Total expenses | |||
Related Party Transaction | |||
Related party expenses, net | $ 13,371 | $ 12,989 | $ 13,762 |
Related Party Agreements and 64
Related Party Agreements and Transactions - Details of Use of Intellectual Property or Services (Details) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2017USD ($)store_location | Jan. 29, 2016USD ($)store_location | Jan. 30, 2015USD ($)store_location | |
Sears Holdings Corporation | |||
Related Party Transaction | |||
Number of Lands' End Shops at Sears closed in period | store_location | 11 | 9 | 38 |
Related party revenue, net | $ 5,034 | $ 5,203 | $ 6,178 |
Sears Holdings Corporation | Call center services | |||
Related Party Transaction | |||
Related party revenue, net | 2,124 | 2,344 | 2,346 |
Sears Holdings Corporation | Lands' End business outfitters revenue | |||
Related Party Transaction | |||
Related party revenue, net | 1,574 | 1,398 | 1,995 |
Sears Holdings Corporation | Credit card revenue | |||
Related Party Transaction | |||
Related party revenue, net | 1,147 | 1,274 | 1,519 |
Sears Holdings Corporation | Gift card revenue (expense) | |||
Related Party Transaction | |||
Related party revenue, net | (32) | (33) | 239 |
Sears Holdings Corporation | Royalty income | |||
Related Party Transaction | |||
Related party revenue, net | 221 | 220 | 79 |
Sales Revenue, Net [Member] | |||
Related Party Transaction | |||
Call Center Service Revenue | $ 8,200 | $ 8,600 | $ 8,100 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Jan. 27, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Reporting - Details by
Segment Reporting - Details by Product Category, Segment and Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May 01, 2015 | Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | $ 458,841 | $ 311,476 | $ 292,010 | $ 273,433 | $ 473,543 | $ 334,434 | $ 312,414 | $ 299,387 | $ 1,335,760 | $ 1,419,778 | $ 1,555,353 |
Total adjusted EBITDA | 39,832 | 107,288 | 164,298 | ||||||||
Gain (Loss) on Disposition of Assets | (672) | (44) | (239) | ||||||||
Product recall | (212) | (3,371) | 4,713 | ||||||||
Depreciation and amortization | 19,003 | 17,399 | 19,703 | ||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 173,000 | 98,300 | 0 | ||||||||
Operating income (loss)(2) | (148,434) | (3,423) | 2,712 | (3,486) | (54,794) | 23,297 | 17,918 | 8,495 | (152,631) | (5,084) | 139,643 |
Interest Expense | 24,630 | 24,826 | 20,494 | ||||||||
Income Tax Expense (Benefit) | (69,098) | (9,691) | 46,758 | ||||||||
Total assets | 1,114,391 | 1,281,526 | 1,114,391 | 1,281,526 | |||||||
Total capital expenditures | 33,319 | 22,224 | 16,608 | ||||||||
Total property and equipment, net | 122,836 | 109,831 | 122,836 | 109,831 | |||||||
Other Nonoperating Income (Expense) | (1,619) | 671 | 1,408 | ||||||||
Net Income (Loss) Attributable to Parent | (94,821) | $ (7,222) | $ (1,980) | $ (5,759) | (39,458) | $ 10,725 | $ 7,461 | $ 1,724 | (109,782) | (19,548) | 73,799 |
Operating segments | Direct | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 1,149,149 | 1,214,993 | 1,320,642 | ||||||||
Total adjusted EBITDA | 78,582 | 141,936 | 192,763 | ||||||||
Depreciation and amortization | 15,877 | 13,916 | 15,640 | ||||||||
Total assets | 805,201 | 953,502 | 805,201 | 953,502 | |||||||
Total capital expenditures | 32,590 | 21,630 | 15,160 | ||||||||
Operating segments | Retail | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 186,390 | 204,566 | 234,632 | ||||||||
Total adjusted EBITDA | (5,560) | (520) | 7,161 | ||||||||
Depreciation and amortization | 1,674 | 2,029 | 2,618 | ||||||||
Total assets | 69,792 | 69,321 | 69,792 | 69,321 | |||||||
Total capital expenditures | 635 | 318 | 1,004 | ||||||||
Corporate/other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 221 | 219 | 79 | ||||||||
Total adjusted EBITDA | (33,190) | (34,128) | (35,626) | ||||||||
Depreciation and amortization | 1,452 | 1,454 | 1,445 | ||||||||
Total assets | 239,398 | 258,703 | 239,398 | 258,703 | |||||||
Total capital expenditures | 94 | 276 | 444 | ||||||||
Apparel | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 1,086,439 | 1,156,047 | 1,248,847 | ||||||||
Non-apparel | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 168,945 | 183,073 | 220,385 | ||||||||
Services and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 80,376 | 80,658 | 86,121 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 1,143,529 | 1,211,226 | 1,309,252 | ||||||||
Total property and equipment, net | 113,045 | 98,153 | 113,045 | 98,153 | |||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 125,410 | 136,890 | 159,796 | ||||||||
Total property and equipment, net | 9,075 | 10,980 | 9,075 | 10,980 | |||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | 50,030 | 51,808 | 56,014 | ||||||||
Total property and equipment, net | $ 716 | $ 698 | 716 | 698 | |||||||
Other foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total merchandise sales and services, net | $ 16,791 | $ 19,854 | $ 30,291 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 04, 2015 | Jan. 27, 2017 | Jan. 29, 2016 |
Tax Years 2005 - 2007 and 2009 - 2012 [Member] [Member] | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | $ 6.5 | ||
Tax Years 2005 - 2006 | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | 1.6 | $ 2.4 | |
Tax Year 2008 | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | $ 0.9 | ||
Selling and Administrative Costs | Tax Years 2007, 2009 and 2010 | |||
Gain Contingencies | |||
Recovery of excessive taxes and interest | $ 1.6 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 27, 2017 | Jan. 29, 2016 |
Other Liabilities, Current [Abstract] | ||
Deferred gift card revenue | $ 19,999 | $ 20,802 |
Accrued employee compensation and benefits | 13,165 | 12,785 |
Reserve for sales returns and allowances | 11,794 | 12,605 |
Deferred revenue | 10,660 | 11,097 |
Accrued property, sales and other taxes | 7,578 | 7,536 |
Short-term portion of long-term debt | 5,150 | 5,150 |
Product recall | 0 | 207 |
Other | 18,100 | 13,810 |
Total other current liabilities | $ 86,446 | $ 83,992 |
Quarterly Financial Data (Una69
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May 01, 2015 | Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 173,000 | $ 98,300 | $ 0 | ||||||||
Net revenue | $ 458,841 | $ 311,476 | $ 292,010 | $ 273,433 | $ 473,543 | $ 334,434 | $ 312,414 | $ 299,387 | 1,335,760 | 1,419,778 | 1,555,353 |
Gross profit | 176,935 | 133,651 | 136,152 | 129,670 | 199,110 | 162,415 | 144,500 | 146,564 | 576,408 | 652,589 | 735,931 |
Operating income (loss)(2) | (148,434) | (3,423) | 2,712 | (3,486) | (54,794) | 23,297 | 17,918 | 8,495 | (152,631) | (5,084) | 139,643 |
Net (loss) income | $ (94,821) | $ (7,222) | $ (1,980) | $ (5,759) | $ (39,458) | $ 10,725 | $ 7,461 | $ 1,724 | $ (109,782) | $ (19,548) | $ 73,799 |
Basic earnings per share (in dollars per share) | $ (2.96) | $ (0.23) | $ (0.06) | $ (0.18) | $ (3.43) | $ (0.61) | $ 2.31 | ||||
Diluted earnings per share (in dollars per share) | $ (2.96) | $ (0.23) | $ (0.06) | $ (0.18) | $ (1.23) | $ 0.33 | $ 0.23 | $ 0.05 | $ (3.43) | $ (0.61) | $ 2.31 |
Basic and diluted earnings per common share (in dollars per share) | $ (1.23) | $ 0.34 | $ 0.23 | $ 0.05 | |||||||
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 | 38.60% | 42.90% | 46.60% | 47.40% | 42.00% | 48.60% | 46.30% | 49.00% | |||
Operating income to net sales, percentage | (32.30%) | (1.10%) | 0.90% | (1.30%) | (11.60%) | 7.00% | 5.70% | 2.80% | |||
Net income to net sales, percentage | (20.70%) | (2.30%) | (0.70%) | (2.10%) | (8.30%) | 3.20% | 2.40% | 0.60% | |||
Number of common stock shares expected to be distributed by former parent company | 32,021 | 31,979 | 31,957 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May 01, 2015 | Jan. 27, 2017 | Jan. 29, 2016 | Jan. 30, 2015 | |
Subsequent Event [Line Items] | |||||||||||
Net revenue | $ 458,841 | $ 311,476 | $ 292,010 | $ 273,433 | $ 473,543 | $ 334,434 | $ 312,414 | $ 299,387 | $ 1,335,760 | $ 1,419,778 | $ 1,555,353 |
Cost of sales (excluding depreciation and amortization) | 759,352 | 767,189 | 819,422 | ||||||||
Operating income (loss)(2) | (148,434) | (3,423) | 2,712 | (3,486) | (54,794) | 23,297 | 17,918 | 8,495 | (152,631) | (5,084) | 139,643 |
Income Tax Expense (Benefit) | (69,098) | (9,691) | 46,758 | ||||||||
Net (loss) income | $ (94,821) | $ (7,222) | $ (1,980) | $ (5,759) | $ (39,458) | $ 10,725 | $ 7,461 | $ 1,724 | $ (109,782) | $ (19,548) | $ 73,799 |