Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2019 | Mar. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Lands' End, Inc. | |
Entity Central Index Key | 0000799288 | |
Current Fiscal Year End Date | --02-01 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Feb. 1, 2019 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,249,492 | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 260.3 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 1,451,592,000 | $ 1,406,677,000 | $ 1,335,760,000 |
Gross profit | |||
Cost of sales (excluding depreciation and amortization) | 835,536,000 | 809,474,000 | 759,352,000 |
Gross profit | 616,056,000 | 597,203,000 | 576,408,000 |
Selling and administrative | 545,590,000 | 538,939,000 | 536,576,000 |
Depreciation and amortization | 27,558,000 | 24,910,000 | 19,003,000 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 173,000,000 |
Other operating expense, net | 309,000 | 4,269,000 | 460,000 |
Total costs and expenses | 573,457,000 | 568,118,000 | 729,039,000 |
Operating income (loss) | 42,599,000 | 29,085,000 | (152,631,000) |
Interest expense | 28,909,000 | 25,929,000 | 24,630,000 |
Other expense, net | 4,059,000 | 2,708,000 | 1,619,000 |
Income (loss) before income taxes | 9,631,000 | 448,000 | (178,880,000) |
Income tax benefit | (1,959,000) | (27,747,000) | (69,098,000) |
NET INCOME (LOSS) | $ 11,590,000 | $ 28,195,000 | $ (109,782,000) |
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS (Note 2) | |||
Basic earnings per share (in dollars per share) | $ 0.36 | $ 0.88 | $ (3.43) |
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.88 | $ (3.43) |
Basic weighted average common shares outstanding | 32,190 | 32,076 | 32,021 |
Diluted weighted average common shares outstanding | 32,526 | 32,110 | 32,021 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | Jan. 29, 2016 |
Statement of Financial Position [Abstract] | ||||
Cash | $ 193,405 | $ 195,581 | ||
Current assets | ||||
Restricted cash | 1,948 | 2,356 | ||
Accounts receivable, net | 34,549 | 49,860 | ||
Inventories, net | 321,905 | 332,297 | ||
Prepaid expenses and other current assets | 36,574 | 26,659 | ||
Total current assets | 588,381 | 606,753 | ||
Property and equipment, net | 149,894 | 136,501 | $ 122,836 | |
Goodwill | 110,000 | 110,000 | 110,000 | |
Intangible asset, net | 257,000 | 257,000 | ||
Other assets | 5,636 | 13,881 | ||
Total assets | 1,110,911 | 1,124,135 | ||
Current liabilities | ||||
Accounts payable | 123,827 | 155,874 | ||
Other current liabilities | 117,424 | 100,257 | ||
Total current liabilities | 241,251 | 256,131 | ||
Long-term debt, net | 482,453 | 486,248 | ||
Long-term deferred tax liabilities | 58,670 | 59,137 | ||
Other liabilities | 5,826 | 15,526 | ||
Total liabilities | 788,200 | 817,042 | ||
Commitments and contingencies | ||||
STOCKHOLDERS' EQUITY | ||||
Common stock, par value $0.01- authorized: 480,000,000 shares; issued and outstanding: 32,220,080 and 32,101,793, respectively | 320 | 320 | ||
Additional paid-in capital | 352,733 | 347,175 | ||
Accumulated deficit | (17,159) | (29,810) | ||
Accumulated other comprehensive loss | (13,183) | (10,592) | (12,426) | (9,384) |
Total stockholders’ equity | 322,711 | 307,093 | $ 271,412 | $ 384,509 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,110,911 | $ 1,124,135 |
Consolidated and Combined Bal_2
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 | 32,220,080 | 32,101,793 |
Consolidated and Combined Sta_2
Consolidated and Combined Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019USD ($) | Feb. 02, 2018USD ($) | Jan. 27, 2017USD ($) | |
Statement of Cash Flows [Abstract] | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 195,353 | $ 197,937 | $ 216,408 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | 11,590 | 28,195 | (109,782) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 27,558 | 24,910 | 19,003 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 173,000 |
Product recall | 0 | 0 | (212) |
Amortization of debt issuance costs | 1,755 | 1,904 | 1,712 |
Loss on disposal of property and equipment | 278 | 348 | 672 |
Stock-based compensation | 6,161 | 3,951 | 2,230 |
Deferred income taxes | 223 | (32,757) | (67,253) |
Change in operating assets and liabilities: | |||
Inventories | 7,773 | (2,709) | 755 |
Accounts payable | (29,433) | (6,950) | 16,951 |
Other operating assets | 17,824 | (3,234) | (12,356) |
Other operating liabilities | 4,471 | 14,779 | (631) |
Net cash provided by operating activities | 48,200 | 28,437 | 24,089 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of property and equipment | 456 | 68 | 47 |
Purchases of property and equipment | (44,852) | (38,145) | (33,319) |
Net cash used in investing activities | (44,396) | (38,077) | (33,272) |
Payments Related to Tax Withholding for Share-based Compensation | (603) | (747) | (396) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payments on term loan facility | (5,150) | (5,150) | (5,150) |
Debt issuance costs | 0 | (1,515) | 0 |
Net cash used in financing activities | (5,753) | (7,412) | (5,546) |
Effects of exchange rate changes on cash | (635) | (1,419) | (531) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (2,584) | (18,471) | (15,260) |
SUPPLEMENTAL INFORMATION: | |||
Unpaid liability to acquire property and equipment | 5,521 | 7,756 | 8,419 |
Income taxes paid | 1,221 | 3,379 | 3,653 |
Interest paid | $ 27,243 | $ 23,458 | $ 22,484 |
Consolidated and Combined Sta_3
Consolidated and Combined Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member] |
Shares outstanding at Jan. 29, 2016 | 32,101,793 | 31,991,668 | ||||
Beginning Balance, in USD at Jan. 29, 2016 | $ 384,509 | $ 320 | $ 344,244 | $ 49,329 | $ (9,384) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (109,782) | (109,782) | $ 0 | |||
Cumulative translation adjustment, net of tax | (3,042) | (3,042) | ||||
Prior period tax adjustment to Paid in Capital | (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) | |||||
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 | $ (396) | $ 0 | (396) | |||
Shares outstanding at Jan. 27, 2017 | 32,220,080 | 32,029,359 | ||||
Ending Balance, in USD at Jan. 27, 2017 | $ 271,412 | $ 320 | 343,971 | (60,453) | (12,426) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 28,195 | 28,195 | ||||
Cumulative translation adjustment, net of tax | 4,282 | 4,282 | ||||
Tax Act Impact | 2,448 | (2,448) | ||||
Stock-based compensation expense | 3,951 | $ 0 | 3,951 | |||
Vesting of restricted shares (in shares) | 110,162 | |||||
Vesting of restricted shares | 0 | |||||
Restricted stock shares surrendered for taxes (in shares) | (37,728) | |||||
Dividends | 28,195 | |||||
Reclassification of net parent company investment to common stock and additional paid-in capital in conjunction with the separation, in USD | (747) | $ 0 | (747) | |||
Shares outstanding at Feb. 02, 2018 | 32,101,793 | |||||
Ending Balance, in USD at Feb. 02, 2018 | 307,093 | $ 320 | 347,175 | (29,810) | (10,592) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,061 | 1,061 | ||||
Net income (loss) | 11,590 | 11,590 | ||||
Cumulative translation adjustment, net of tax | (2,591) | (2,591) | ||||
Stock-based compensation expense | 6,161 | 6,161 | ||||
Vesting of restricted shares (in shares) | 151,401 | |||||
Restricted stock shares surrendered for taxes (in shares) | (33,114) | |||||
Restricted stock shares surrendered for taxes | 603 | (603) | ||||
Shares outstanding at Feb. 01, 2019 | 32,220,080 | |||||
Ending Balance, in USD at Feb. 01, 2019 | $ 322,711 | $ 320 | $ 352,733 | $ (17,159) | $ (13,183) |
Consolidated and Combined Sta_4
Consolidated and Combined Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Consolidated and Combined Statements of Comprehensive Operations [Abstract] | |||
Net income (loss) | $ 11,590 | $ 28,195 | $ (109,782) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2,591) | 4,282 | (3,042) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 8,999 | $ 32,477 | $ (112,824) |
Debt Disclosure Statement
Debt Disclosure Statement - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 |
Reported Value Measurement [Member] | Secured Debt [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 490,538 | $ 495,688 |
Estimate of Fair Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 460,493 | $ 443,641 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Feb. 01, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | BACKGROUND AND BASIS OF PRESENTATION Description of Business 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 November 16, 2017, with Wells Fargo Bank, N.A. and certain other lenders • ASC - Financial Accounting Standards Board Accounting Standards Codification, which serves as the source for authoritative GAAP, as supplemented by rules and interpretive releases by the SEC which 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 2018 - The 13 weeks ended May 4, 2018 • First Quarter 2019 - The 13 weeks ended May 3, 2019 • Fiscal 2019 - The Company's next fiscal year representing the 52 weeks ending January 31, 2020 • Fiscal 2018 - The 52 weeks ended February 1, 2019 • Fiscal 2017 - The 53 weeks ended February 2, 2018 • Fiscal 2016 - The 52 weeks ended January 27, 2017 • Fourth Quarter 2018 - The 13 weeks ended February 1, 2019 • Fourth Quarter 2017 - The 14 weeks ended February 2, 2018 • GAAP - Accounting principles generally accepted in the United States • Kmart Holding Corporation - a subsidiary of Sears Holdings Corporation • LIBOR - London inter-bank offered rate • Performance Awards - Performance-based stock awards • Option Awards - Stock option awards • Sears Holdings or Sears Holdings Corporation - Sears Holdings Corporation, a Delaware corporation, and its consolidated subsidiaries • Sears Roebuck - Sears, Roebuck and Co., a subsidiary of Sears Holdings Corporation • SEC - United States Securities and Exchange Commission • 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 • Tax Act - The Tax Cuts and Jobs Act passed by the United States government on December 22, 2017 • 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 • Transform Holdco - Transform Holdco LLC, an affiliate of ESL, which on February 11, 2019 acquired from Sears Holdings substantially all of the go-forward retail footprint and other assets and component businesses of Sears Holdings as a going concern • UTBs - Gross unrecognized tax benefits Basis of Presentation 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 Financial Statements have been prepared in accordance with GAAP. In the opinion of management, all material adjustments 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2019 | |
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. The fiscal periods in this report are presented as follows, unless the context otherwise requires: Fiscal Year Ended Weeks 2018 February 1, 2019 52 2017 February 2, 2018 53 2016 January 27, 2017 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. Working capital requirements typically increase during the second and third quarters of the fiscal year as inventory builds to support peak shipping/selling periods and, accordingly, typically decrease during the fourth quarter of the fiscal year as inventory is shipped/sold. Cash provided by operating activities is typically higher in the fourth quarter of the fiscal year due to reduced working capital requirements during that period. 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 as well as 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. It also includes deposits in-transit from banks for payments related to third-party credit card and debit card transactions. Restricted cash The Company classifies cash balances pledged as collateral 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 $542 thousand as of February 1, 2019 and $637 thousand as of February 2, 2018 . The Accounts receivable balance on the Consolidated Balance Sheets 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: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Beginning balance $ 637 $ 579 $ 626 Provision 192 187 281 Write-offs (287 ) (129 ) (328 ) Ending balance $ 542 $ 637 $ 579 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 net realizable value. 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 88% of total inventory as of February 1, 2019 as well as February 2, 2018 . If the FIFO method of accounting for inventory had been used, the effect on inventory would have been an increase of $1.1 million and $1.0 million as of February 1, 2019 and February 2, 2018 , respectively. 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 $12.5 million and $12.1 million as of February 1, 2019 and February 2, 2018 , 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. The Company had approximately $0.3 million and $0.9 million of trade credits receivable recorded in Accounts receivable, net as of February 1, 2019 and February 2, 2018 , respectively, and an additional $3.5 million of trade credits receivable recorded in Other assets as of February 1, 2019 as well as February 2, 2018 . Trade credit receivable balances include credits recorded in prior years. 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 $13.5 million and $13.7 million as of February 1, 2019 and February 2, 2018 , 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 $186.9 million , $186.4 million and $193.2 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. These costs are included within Selling and administrative expenses in the accompanying Consolidated 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 February 1, 2019 February 2, 2018 Land — $ 3,459 $ 3,533 Buildings and improvements 15-30 99,400 100,122 Furniture, fixtures and equipment 3-10 62,823 69,940 Computer hardware and software 3-10 146,400 122,336 Leasehold improvements 3-7 6,569 10,329 Assets in development 27,296 23,428 Gross property and equipment 345,947 329,688 Accumulated depreciation (196,053 ) (193,187 ) Total property and equipment, net $ 149,894 $ 136,501 As of February 1, 2019 and February 2, 2018 , assets in development relate primarily to technological investments in the ERP system. Assets placed in service related to the ERP system during Fiscal 2018 were $16.2 million. 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 was $27.6 million , $24.9 million and $19.0 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. Impairment of Property and Equipment 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. During Fiscal 2018 an impairment of $254 thousand was recognized for property and equipment in two Retail locations. There were no impairments of property and equipment recognized in Fiscal 2017 or Fiscal 2016. 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 were originally valued in connection with Kmart Holding Corporation's acquisition of Sears Roebuck in March 2005. The Company's impairment evaluation contains multiple uncertainties because it requires management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including forecasting cash flows under different scenarios. We perform goodwill and indefinite-lived intangible asset impairment tests on an annual basis and update these annual impairment tests mid-year 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. If actual results fall short of 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 tests goodwill for impairment using a one-step quantitative test. The quantitative test compares the reporting unit's fair value to its carrying value. An impairment is recorded for any excess carrying value above the reporting unit's fair value, not to exceed the amount of goodwill. The Company estimates fair value 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 using the best information available, 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. Prior to February 1, 2019, the Company had two reporting units, Direct and Retail. Goodwill was allocated to the Direct reporting unit as Retail did not exist at the time of the Kmart Holding Corporation’s acquisition of Sears Roebuck in March 2005. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, the fair value of the reporting unit exceeded its carrying value and as such, the Company did not record a goodwill impairment charge. A reporting unit is an operating segment, or one level below an operating segment, for which discrete financial information is prepared and regularly reviewed by management. As a result of the Fiscal 2018 year end change in operating segments discussed in Note 12, the Company has reassessed the reporting units. At the end of Fiscal 2018, Lands' End's reporting units were identical to the operating segments of U.S. eCommerce, Outfitters, Europe eCommerce, Japan eCommerce and Retail. Goodwill was allocated to these reporting units based on relative fair value resulting in goodwill being allocated to the U.S. eCommerce, Outfitters and Japan eCommerce reporting units. The Europe eCommerce and Retail reporting units were not allocated goodwill. As required, the Company performed an impairment test before the change and after the change. Neither resulted in the recognition of impairment. At the end of Fiscal 2018, the fair value of these reporting units exceeded the carrying value by 56.1% , 30.2% and 36.7% respectively. Goodwill impairment charges may be recognized in future periods to the extent changes in factors or circumstances occur, including deterioration in the macroeconomic environment, retail industry or in the equity markets, deterioration in our performance or our future projections, or changes in our plans for the reporting unit. Indefinite-lived intangible asset impairment assessments The Company's indefinite-lived intangible asset is the Lands' End trade name. Lands' End reviews the trade name for impairment, on an annual basis, by comparing the carrying amount to its fair value, using the income approach. Lands' End determined that the relief from royalty method of the income approach 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 2018 , Fiscal 2017 and Fiscal 2016 , the Company tested the indefinite-lived intangible assets as required. As a result of this testing, in Fiscal 2016 the Company recorded a non-cash pretax trade name impairment charge of approximately $173.0 million to the Intangible asset impairment line in the Consolidated Statements of Operations. During Fiscal 2018 and Fiscal 2017 the fair value exceeded the carrying value by 45.1% and 9.7% respectively and as such, no trade name impairment charges were recorded in either period. Financial Instruments with Off-Balance-Sheet Risk The Company entered into the ABL Facility on November 16, 2017, which provides for maximum borrowings of $ 175.0 million for the Company, subject to a borrowing base. The ABL Facility has a letter of credit sub-limit of $ 70.0 million and will mature no later than November 16, 2022, subject to customary extension provisions provided for therein. The ABL Facility is available for working capital and other general corporate purposes, and was undrawn, 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 $34.5 million and $49.9 million as of February 1, 2019 and February 2, 2018 , respectively. Bad debt expense was $0.2 million , $0.2 million and $0.3 million in Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. At February 1, 2019 and February 2, 2018 accounts receivable included $0.1 million and $2.0 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, net 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 February 1, 2019 and February 2, 2018 . 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 Statements of Changes in Stockholders' Equity. The Company recognized an insignificant gain in Fiscal 2018 , a loss of $4.8 million in Fiscal 2017 and an insignificant loss in Fiscal 2016 , in the accompanying Consolidated Statements of Operations . Revenue Recognition Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company's revenue is recognized when control of product passes to customers, which for the eCommerce and Outfitters channels is when the merchandise is expected to be received by the customer and for the Retail channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Company's products transfers to customers, and is presented net of various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. The Company's revenue is disaggregated by channel and geographic location. The Company elected to exclude from revenue, taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and concurrent with revenue-producing activities, and as a result there is no change in presentation from prior comparative periods. Contract Liabilities Contract liabilities consist of payments received in advance of the transfer of control to the customer. As products are delivered and control transfers, the Company recognizes the deferred revenue in Net revenue in the Consolidated Statements of Operations. The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer reported in Other current liabilities in the Consolidated Balance Sheets and amounts recognized through Net revenue for each period presented. The remainder of deferred revenue as of February 1, 2019 is expected to be recognized in Net revenue in the fiscal quarter ending May 4, 2019, as products are delivered to customers. (in thousands) Fiscal 2018 Deferred revenue beginning of period $ 12,993 Deferred revenue recognized in period (12,993 ) Revenue deferred in period 9,051 Deferred revenue end of period $ 9,051 Revenue from gift cards is recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Gift card breakage is recorded within Net revenue in the Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability, included within Other current liabilities in the Consolidated Balance Sheets. The total contract liability related to gift cards issued was $18.2 million and $19.3 million in Fiscal 2018 and Fiscal 2017 respectively. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards: (in thousands) Fiscal 2018 Balance as of beginning of period $ 19,272 Gift cards sold 57,465 Gift cards redeemed (56,502 ) Gift card breakage (984 ) Change in accounting principle (1,060 ) Balance as of February 1, 2019 $ 18,191 Refund Liabilities Refund liabilities, primarily associated with product sales returns and retrospective volume rebates, represent variable consideration and are estimated and recorded as a reduction to Net revenue based on historical experience. As of Fiscal 2018 and Fiscal 2017, $22.2 million and $11.1 million, respectively, of refund liabilities, primarily associated with product returns, were reported in Other current liabilities in the Condensed Consolidated Balance Sheets. Prior to adoption, product return assets and return liabilities were reported net within Other current liabilities. As of the adoption date, the product return assets were reclassified and reported as a component of Prepaid expenses and other current assets, and return liabilities continued to be reported in Other current liabilities in the Company's Consolidated Balance Sheet. 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 are not included in the Company's Cost of sales. The Company participates to a limited extent in Sears Holdings' Shop Your Way program. Customers earn points issued by SHMC on purchases made in Lands’ End Shops at Sears which may be redeemed to pay for future purchases at Lands’ End Shops at Sears. 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 Shop Your Way program expenses are recorded in Cost of sales in the Consolidated Statements of Operations. 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, 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 . Selling and administrative expenses included $30.2 million , $47.1 million and $52.9 million in Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively, of costs allocated or charged to the Company by Sears Holdings. See Note 11 , Related Party Agreements and Transactions . Restructuring Costs During Fiscal 2017, the Company implemented an initiative to right-size its New York Office in an effort to create efficiencies and refocus the Company back to its corporate headquarters in Dodgeville, Wisconsin. The restructuring included certain headcount reductions and the exit of a facility. The total restructuring charge as a result of this action was $3.9 million . The following table summarizes the activity of the Company's restructuring accrual: (in thousands) Termination Costs Other Costs Total Balance as of January 27, 2017 $ — $ — $ — Provision 2,401 1,520 3,921 Cash disbursements (1,793 ) — (1,793 ) Non-cash items — 546 546 Balance as of February 2, 2018 $ 608 $ 2,066 $ 2,674 Cash disbursements (608 ) (757 ) (1,365 ) Balance as of February 1, 2019 $ — $ 1,309 $ 1,309 Termination costs consist of involuntary employee termination benefits and severance pursuant to a nonrecurring benefit arrangement recognized as part of a restructuring initiative. Other costs consist of non-termination type costs, including lease termination costs and incremental costs to consolidate or close facilities and relocate employees. 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 Statements of Operations. See Note 9 , Income Taxes , for further details. The Company performed an evaluation over its deferred tax assets and determined that a valuation allowance is considered necessary. See Note 9 , Income Taxes , for further details on the valuation allowance. Excluding the $173.0 million non-cash impairment charge to the indefinite-lived intangible asset in Fiscal 2016 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. Pursuant to this agreement, Sears Holdings Corporation is generally responsible for all United States federal, state and local UTBs, through the date of the Separation. On October 15, 2018, Sears Holdings Corporation and certain of its subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the Southern District of New York seeking relief under Chapter 11 of Title 11 of the United States Code (collectively the “Sears Filing").As a result of the Sears Filing, the Company believes that the recovery of the UTBs provided by the Tax Sharing Agreement is uncertain. 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 $17.1 million , $16.5 million and $18.2 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , 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. The Company 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 incurred under this plan was $3.5 million , $3.2 million and $3.3 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. Other Comprehensive Income (Loss) Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders, and is comprised solely of foreign currency translation adjustments, impact of the Tax Act on the translation adjustments and net income (loss). (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Beginning balance: Accumulated other comprehensive loss (net of tax of $2,816, $6,691 and $5,053, respectively) $ (10,592 ) $ (12,426 ) $ (9,384 ) Other comprehensive income (loss) Foreign currency translation adjustments (net of tax of $689, $(1,427) and $1,638, respectively) (2,591 ) 4,282 (3,042 ) Impact of Tax Act — (2,448 ) — Ending balance: Accumulated other comprehensive loss (net of tax of $3,505, $2,816 and $6,691, respectively) $ (13,183 ) $ (10,592 ) $ (12,426 ) As a result of the Tax Act, in Fiscal 2017, $2.4 million was reclassified out of Accumulated other comprehensive loss into Accumulated deficit in accordance with the adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income . See New Accounting Pronouncements for further discussion. No other amounts were reclassified out of Accumulated other comprehensive loss in 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 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 ASC 260, Earnings Per Share . The following table summarizes the components of basic and diluted EPS: (in thousands, except per share amounts) Fiscal 2018 Fiscal 2017 Fiscal 2016 Net income (loss) $ 11,590 $ 28,195 $ (109,782 ) Basic weighted average shares outstanding 32,190 32,076 32,021 Dilutive effect of stock awards 336 34 — Diluted weighted average shares outstanding 32,526 32,110 32,021 Basic earnings (loss) per share $ 0.36 $ 0.88 $ (3.43 ) Diluted earnings (loss) per share $ 0.36 $ 0.88 $ (3.43 ) 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 438,583 , 397,669 and 163,633 anti-dilutive shares excluded from the diluted weighted average shares outstanding in Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. New Accounting Pronouncements Income Statement - Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02 , Income Statement - Reporting Comprehensive Income , in response to the Tax Cuts and Jobs Act enacted on December 22, 2017 by the U.S. federal government. The standard eliminates the stranded tax effects resulting from the Tax Cuts and Jobs Act by reclassifying the effect out of Accumulated other comprehensive loss and into Accumulated deficit. This guidance was adopted by the Company during Fourth Quarter 2017 and resulted in a $2.4 million reclassification on the Consolidated Balance Sheets from Accumulated |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company's income (loss) before income taxes in the United States and in foreign jurisdictions is as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Income (loss) before income taxes: United States $ 16,297 $ 9,011 $ (174,461 ) Foreign (6,666 ) (8,563 ) (4,419 ) Total income (loss) before income taxes $ 9,631 $ 448 $ (178,880 ) The components of the (benefit from) provision for income taxes are as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 United States $ (1,959 ) $ (27,623 ) $ (70,316 ) Foreign — (124 ) 1,218 Total (benefit) provision $ (1,959 ) $ (27,747 ) $ (69,098 ) (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Current: Federal $ (4,457 ) $ 4,804 $ (2,834 ) State 2,275 330 (229 ) Foreign — (124 ) 1,218 Total current (2,182 ) 5,010 (1,845 ) Deferred: Federal 1,650 (34,901 ) (62,645 ) State (1,427 ) 2,144 (4,608 ) Total deferred 223 (32,757 ) (67,253 ) Total (benefit) provision $ (1,959 ) $ (27,747 ) $ (69,098 ) A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Tax at statutory federal income tax rate* 21.0 % 33.8 % 35.0 % State income taxes, net of federal tax benefit 10.0 % 103.5 % 2.7 % Foreign differential (4.6 )% 108.6 % — % Permanent differences 23.4 % 383.1 % (0.7 )% Tax law changes — % (7,793.7 )% — % Repatriation of foreign earnings (38.4 )% 950.9 % — % Uncertain tax benefits (38.6 )% (600.1 )% 0.8 % Change in foreign valuation allowance 19.2 % 509.8 % — % Other, net (12.3 )% 110.6 % 0.8 % Total at effective income tax rate (20.3 )% (6,193.5 )% 38.6 % *Under Internal Revenue Code Section 15(a), companies are required to calculate their federal tax rate using a blended rate based on the date of enactment of the Tax Act (“Federal Blended Rate”). The Federal Blended Rate for the Company is 33.8% for Fiscal 2017. Deferred tax assets and liabilities consisted of the following: (in thousands) February 1, 2019 February 2, 2018 Deferred tax assets: Deferred revenue $ 3,053 $ 3,292 Legal and other reserves 1,714 1,512 Deferred compensation 10,360 4,029 Reserve for returns 2,271 2,301 Inventory 3,690 3,099 Currency translation adjustment - foreign subsidiaries 3,505 2,816 Other 3,041 4,330 Total deferred tax assets 27,634 21,379 Net operating loss carryforward 5,117 2,284 Less valuation allowance (5,079 ) (2,284 ) Net deferred tax assets $ 27,672 $ 21,379 Deferred tax liabilities: Intangible assets $ 62,959 $ 62,754 LIFO reserve 16,382 16,659 Property, plant and equipment 5,098 — Catalog marketing 1,903 1,103 Total deferred tax liabilities 86,342 80,516 Net deferred tax liability $ 58,670 $ 59,137 As of February 1, 2019, the Company had $13.9 million of state net operating loss (“NOL”) carryforwards (generating a $1.0 million deferred tax asset) available to offset future taxable income. The state NOL carryforwards generally expire between 2022 and 2038 with certain state NOLs generated after 2017 having indefinite carryforward. The Company’s foreign subsidiaries had $15.2 million of NOL carryforwards (generating a $4.1 million deferred tax asset) available to offset future taxable income. These foreign NOLs can be carried forward indefinitely, however, a valuation allowance was established since the future utilization of these NOLs is uncertain. A reconciliation of the beginning and ending amount of UTBs is as follows: Federal, State and Foreign Tax (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Gross UTB balance at beginning of period $ 4,531 $ 6,901 $ 8,311 Tax positions related to the current period—gross increases — — 120 Tax positions related to the prior periods—gross decreases (2,588 ) (2,370 ) (1,530 ) Settlements (485 ) — — Gross UTB balance at end of period $ 1,458 $ 4,531 $ 6,901 As of February 1, 2019, the Company had UTBs of $1.5 million . Of this amount, $1.2 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. The Company classifies interest expense and penalties related to UTBs and interest income on tax overpayments as components of income tax expense. As of February 1, 2019, the total amount of interest expense and penalties recognized on the balance sheet was $0.8 million ( $0.6 million net of federal benefit). As of February 2, 2018, the total amount of interest and penalties recognized on the balance sheet was $3.2 million ( $2.5 million net of federal benefit). The total amount of net interest expense recognized in the Consolidated Statements of Operations was 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 open to examination by the Internal Revenue Service for the years 2015 and forward. Sears Holdings and the Company are under examination by various state income tax jurisdictions for the years 2011 to 2014. Impacts of Separation At Separation from Sears, the Company entered into a Tax Sharing Agreement with respect to Federal and State Income tax liabilities concerning pre-separation periods. 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. For Fiscal 2018, the asset was written down $4.8 million related to favorable state tax audit settlements. In addition, due to filings by Sears in the US Bankruptcy Court in the third quarter of Fiscal 2018, the Company believes that the recovery of the remaining UTB’s provided by the Tax Sharing Agreement to be uncertain. As a result, in the third quarter of Fiscal 2018, the Company recorded a charge of $2.6 million to establish a reserve on the remaining balance of the indemnification asset. Therefore, the indemnification asset was $0 and $7.4 million at February 1, 2019 and February 2, 2018, respectively. Impacts of the Tax Act On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) ("Tax Act") was signed into law. The Tax Act contains significant changes to corporate taxation, including (i) the reduction of the corporate income tax rate to 21%, (ii) the acceleration of expensing for certain business assets, (iii) the nonrecurring transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system, (iv) the repeal of the domestic production deduction, (v) additional limitations on the deductibility of interest expense, and (vi) expanded limitations on the deductibility of executive compensation. In December 2017, the U.S. Securities and Exchange Commission staff issued Staff Accounting Bulletin (SAB) 118 to provide guidance for companies that had not completed their accounting for the income tax effects of the Tax Act. Due to the complexities involved in accounting for the enactment of the Tax Act, SAB 118 allowed for a provisional estimate of the impacts of the Tax Act in our earnings for the year ended February 2, 2018, as well as up to a one-year measurement period that ended on December 22, 2018, for any subsequent adjustments to such provisional estimate. Pursuant to SAB 118, in Fiscal 2017, the Company recorded a $30.6 million benefit which consisted of the provisional amounts for the re-measurement of deferred tax balances at the new expected tax rates under the Tax Act. This includes a net reduction of deferred liabilities of $29.7 million plus a $5.2 million reduction to deferred liabilities on unremitted foreign earnings previously recorded. Both amounts are offset by the provisional amount for a nonrecurring transition tax liability of $4.3 million related to foreign investments under the Tax Act. The Company has completed its analysis of the impacts of the Tax Act, including analyzing the effects of any Internal Revenue Service (IRS) and U.S. Treasury guidance issued, and state tax law changes enacted, within the maximum one-year measurement period resulting in an additional $3.7 million benefit, in Fiscal 2018, to the $30.6 million provisional amount previously recorded. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2019 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, Leases , which replaced the existing guidance in ASC 840, Leases. This update is now ASC 842, Leases. This guidance will be effective for the Company in First Quarter 2019. ASC 842, Leases requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases and recognize 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. The Company leases stores, office space and warehouses under various leasing arrangements. There are 27 total leases that will be included in the implementation of ASC 842, Leases . All leases are classified as operating leases and certain leases include renewal options. Lands' End is the lessor in one contract that is recognized under ASC 842, Leases . This contract is classified as an operating lease. Total rental expense under operating leases was $19.7 million , $27.2 million and $30.6 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. Total future commitments under these operating leases as of February 1, 2019 are as follows for the fiscal years ending (in thousands): 2019 $ 10,389 2020 5,698 2021 4,226 2022 3,172 2023 2,174 Thereafter 6,415 Total minimum payments required (1) $ 32,074 (1) Minimum payments have not been reduced by minimum sublease rentals of $4.2 million due in the future under noncancelable subleases. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 01, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company expenses the fair value of all stock awards over their respective vesting periods, ensuring that, the amount of cumulative compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. The Company has elected to adjust compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize compensation cost on a straight-line basis for awards that only have a service requirement with multiple vest dates. The Company has granted the following types of stock awards to employees at management levels and above: i. Time vesting stock awards ("Deferred Awards") are in the form of restricted stock units and only require each recipient to complete a service period for the awards to be earned. Deferred Awards generally vest over three years or in full after a three year period. The fair value of Deferred Awards is based on the closing price of the Company's common stock on the grant date and is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. ii. Stock option awards ("Option Awards") provide the recipient with the option to purchase a set number of shares at a stated exercise price over the term of the contract, which is ten years for all Option Awards currently outstanding. Options are granted with a strike price equal to the stock price on the date of grant and vest ratably over a four year period. iii. Performance-based stock awards ("Performance Awards") are in the form of restricted stock units and have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. Performance Awards granted prior to Fiscal 2018 had annual vesting, but due to the performance criteria, were not eligible for straight-line expensing. All Performance Awards granted prior to Fiscal 2018 were forfeited during the First Quarter 2018. For Performance Awards granted in Fiscal 2018, the Target Shares earned can range from 0% to 200% and depend on the achievement of Adjusted EBITDA and revenue performance measures for the cumulative three-fiscal year performance period from Fiscal 2018 to Fiscal 2020. The applicable percentage of the Target Shares, as determined by performance, vest after the completion of the applicable three year performance period, and unearned Target Shares are forfeited. The fair value of the Performance Awards granted in Fiscal 2018 is based on the closing price of the Company’s common stock on the grant date. Stock based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover and adjusted based on the Company's estimate of the percentage of the aggregate Target Shares expected to be earned. The following table summarizes the Company's stock-based compensation expense, which is included in Selling and administrative expense in the Consolidated Statements of Operations : (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Deferred Awards $ 4,407 $ 3,212 $ 1,599 Option Awards 748 651 — Performance Awards 1,006 88 631 Total stock-based compensation expense $ 6,161 $ 3,951 $ 2,230 Deferred Awards The following table provides a summary of the Deferred Awards activity for Fiscal 2018 and Fiscal 2017 : Fiscal Year Ended February 1, 2019 February 2, 2018 (in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested deferred awards at beginning of year 497 $ 22.07 252 $ 24.42 Granted 294 21.93 422 21.49 Vested (151 ) 22.32 (70 ) 22.66 Forfeited (46 ) 21.62 (107 ) 24.85 Unvested deferred awards at end of year 594 $ 21.96 497 $ 22.07 Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $8.1 million as of February 1, 2019 , which is expected to be recognized ratably over a weighted average period of 1.9 years . Deferred Awards granted to various employees during Fiscal 2018 generally vest ratably over a period of three years. Performance Awards The following table provides a summary of the Performance Awards activity for Fiscal 2018 and Fiscal 2017 : Fiscal Year Ended February 1, 2019 February 2, 2018 (in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested performance awards at beginning of year 15 $ 21.94 69 $ 26.38 Granted 195 21.90 — — Vested — — (41 ) 28.33 Forfeited (34 ) 21.90 (13 ) 25.20 Unvested performance awards at end of year 176 $ 21.93 15 $ 21.94 Total unrecognized stock-based compensation expense related to unvested Performance Awards was approximately $2.8 million as of February 1, 2019 which is expected to be recognized ratably over a weighted average period of 2.1 years . Performance Awards granted to various employees during Fiscal 2018 vest, if earned, after completion of the applicable three-year performance period. Options Awards The following table provides a summary of the Options Award activity for Fiscal 2018 and Fiscal 2017 : Fiscal Year Ended February 1, 2019 February 2, 2018 (in thousands, except per share amounts) Number of Options Weighted Average Grant Date Fair Value Number of Options Weighted Average Grant Date Fair Value Options outstanding at beginning of year 343 $ 8.73 — $ — Granted — — 343 8.73 Vested (86 ) 8.73 — — Forfeited — — — — Exercised — — — — Options outstanding at end of year 257 $ 8.73 343 $ 8.73 Total unrecognized stock-based compensation expense related to unvested Option Awards was approximately $1.6 million as of February 1, 2019 , which is expected to be recognized ratably over a weighted average period of 2.1 years . The Option Awards have a life of ten years and vest ratably over the first four years. The fair value of each Option Award was estimated on the grant date using the Black-Scholes option pricing model. As of February 1, 2019 , 86 thousand Option Awards were exercisable. No options have been exercised as of February 1, 2019. |
Debt
Debt | 12 Months Ended |
Jan. 27, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt Arrangements On November 16, 2017, the Company entered into the ABL Facility, which provides for maximum borrowings of $ 175.0 million for the Company, subject to a borrowing base. The ABL Facility has a letter of credit sub-limit of $ 70.0 million and will mature no later than November 16, 2022, subject to customary extension provisions provided for therein. The ABL Facility is available for working capital and other general corporate purposes, and was undrawn, other than for letters of credit. Upon entering into the ABL Facility, the Company incurred $1.5 million in debt origination fees. 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. 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 a prior debt arrangement and the Term Loan Facility of approximately $ 11.4 million . The remaining proceeds were 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: February 1, 2019 February 2, 2018 (in thousands) Principal Amount Interest Rate Principal Amount Interest Rate Term Loan Facility, maturing April 4, 2021 $ 490,538 5.77 % $ 495,688 4.82 % ABL Facility, maturing November 16, 2022 — — % — — % 490,538 495,688 Less: current maturities in Other current liabilities 5,150 5,150 Less: unamortized debt issuance costs 2,935 4,290 Long-term debt, net $ 482,453 $ 486,248 The following table summarizes the Company's borrowing availability under the ABL Facility: (in thousands) February 1, 2019 February 2, 2018 ABL Facility maximum borrowing $ 175,000 $ 175,000 Outstanding letters of credit 21,111 22,328 Borrowing availability under ABL $ 153,889 $ 152,672 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. LIBOR borrowings will range from 1.25% to 1.75% for the ABL Facility. Base rate borrowings will range from 0.50% to 1.00% for the ABL Facility. Customary agency fees are payable in respect of the Debt Facilities. The ABL Facility fees also include (i) commitment fees in an amount equal to 0.25% 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 2018 results and in accordance with the Term Loan Facility, no prepayments were required. The Company's aggregate scheduled maturities of the Term Loan Facility as of February 1, 2019 are as follows: (in thousands) Less than 1 year $ 5,150 1 - 2 years 5,150 2 - 3 years 480,238 $ 490,538 Guarantees; Security All obligations under the Debt Facilities are unconditionally guaranteed by Lands' End, Inc. and, subject to certain exceptions, each of its existing and future direct and indirect wholly-owned domestic subsidiaries. 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 February 1, 2019 . 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 |
Feb. 01, 2019 | |
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 February 1, 2019 and February 2, 2018 was $1.9 million and $2.4 million , respectively, 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: February 1, 2019 February 2, 2018 (in thousands) Carrying Amount Fair Value Carrying Fair Long-term debt, including short-term portion $ 490,538 $ 460,493 $ 495,688 $ 443,641 Long-term debt, including short-term portion was valued utilizing level 2 valuation techniques based on the closing inactive market bid price on February 1, 2019 . There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of February 1, 2019 and February 2, 2018 . 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). See Note 2 , Summary of Significant Accounting Policies-Goodwill and Intangible Asset Impairment Assessments , and Note 8 , Goodwill Indefinite-Lived and Intangible Assets, for further details. |
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 The Company's intangible assets, consisting of a trade name and goodwill, were originally valued in connection with a business combination accounted for under the purchase accounting method. Goodwill represents the excess of the purchase price over the fair value of the net assets acquired. The following table summarizes the Company's indefinite-lived intangible asset and Goodwill: (in thousands) Trade Name Goodwill Balance as of January 27, 2017 $ 257,000 $ 110,000 Impairments — — Balance as of February 2, 2018 257,000 110,000 Impairments — — Balance as of February 1, 2019 $ 257,000 $ 110,000 ASC 350, Intangibles - Goodwill and Other, 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 2018 , Fiscal 2017 and Fiscal 2016 the Company conducted impairment testing of its goodwill and indefinite-lived intangible asset. There were no impairment charges recorded for the intangible asset in Fiscal 2018 or Fiscal 2017 . Due to revenue declines, the Company recorded a non-cash pretax indefinite-lived intangible asset impairment charge of $173.0 million during Fiscal 2016. The impairment was recorded in Intangible asset impairment on the Consolidated Statements of Operations. There were no impairments of goodwill during any periods presented or since goodwill was first recognized. See also Note 2 , Summary of Significant Accounting Policies-Goodwill and Intangible Asset Impairment Assessments , for further details. If actual results fall short of 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. |
Related Party Agreements and Tr
Related Party Agreements and Transactions | 12 Months Ended |
Feb. 01, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Agreements and Transactions | RELATED PARTY AGREEMENTS AND TRANSACTIONS According to statements on Schedule 13D filed with the SEC by ESL, ESL beneficially owns 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. On February 11, 2019, Transform Holdco acquired from Sears Holdings substantially all of the go-forward retail footprint and other assets and component businesses of Sears Holdings as a going concern. We believe that ESL holds a significant portion of the membership interests of Transform Holdco and therefore consider that entity to be a related party as well. In connection with and subsequent to the Separation, the Company entered into various agreements with Sears Holdings which, among other things, (i) govern specified aspects of the Company's relationship following the Separation, especially with regards to the Lands’ End Shops at Sears, and (ii) establish terms pursuant to which subsidiaries of Sears Holdings Corporation are providing services to the Company. Sears Holdings and its affiliates filed notices in connection with the Sears Filing identifying certain contracts between the Company and Sears entities as contracts that might be assumed and assigned to Transform Holdco as part of Transform Holdco’s acquisition. To date, the only contract that has been formally assumed and assigned to Transform Holdco is the retail operations agreement governing the operation of Lands' End Shops at Sears. The components of the transactions between the Company and Sears Holdings, which exclude pass-through payments to or from 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 2018 Fiscal 2017 Fiscal 2016 Rent, CAM and occupancy costs 14,798 22,084 24,727 Rental services, store labor 13,719 21,934 24,052 Financial services and payment processing 1,644 2,455 2,834 Supply chain costs 465 741 979 Total expenses $ 30,626 $ 47,214 $ 52,592 Number of Lands' End Shops at Sears at period end (1) 49 174 216 (1) During Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , 125 , 42 and 9 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 remaining individual store locations terminate by January 31, 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 at the Lands' End Shops at Sears, 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 2018 Fiscal 2017 Fiscal 2016 Sourcing $ 7,530 $ 10,243 $ 10,878 Shop Your Way 933 1,119 2,301 Shared services 190 176 192 Total expenses $ 8,653 $ 11,538 $ 13,371 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. The Company's contract under which it receives sourcing services from an affiliate of Sears Holdings runs through June 30, 2020. 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 Statements of Operations. Shop Your Way Prior to April 4, 2018, Lands’ End and SHMC were party to a Shop Your Way retail establishment agreement that governed Lands’ End’s participation in Sears Holdings' Shop Your Way member loyalty program. The Company continues to participate, to a limited extent, in Shop Your Way. Customers earn points issued by SHMC on purchases made in Lands’ End Shops at Sears which may be redeemed to pay for future purchases at Lands’ End Shops at Sears. The Company pays SHMC an agreed-upon fee for points issued in connection with purchases from the Company. All Shop Your Way program expenses are recorded in Cost of sales in the Consolidated Statements of Operations. Shared Services The Company contracts with SHMC to provide certain shared corporate services. During Fiscal 2018, these shared services include compliance services. Use of Intellectual Property or Services Related party revenue charged by the Company to Sears Holdings for the use of intellectual property or services is as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Call center services $ — $ 1,160 $ 8,207 Outfitters revenue 845 1,045 1,574 Credit card revenue 709 980 1,147 Royalty income 189 213 221 Gift card expense (17 ) (32 ) (32 ) Total $ 1,726 $ 3,366 $ 11,117 Call Center Services The Company had entered into a contract with SHMC to provide call center services in support of Sears Holdings’ Shop Your Way member loyalty program. This income was net of agreed upon costs directly attributable to the Company providing these services. The income was included in Net revenue and costs are included in Selling and administrative expenses in the Consolidated Statements of Operations. The contract for call center services expired on April 30, 2017. Outfitters Revenue The Company sells store uniforms and other apparel to Sears Holdings from time to time. Revenue related to these sales is included in Net revenue in the Consolidated 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 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 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 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 Statements of Operations. Additional Related Party Balance Sheet Information Following the Sears Filing, the Company began netting payables due to Sears against receivables due from Sears if and as allowed under its contracts. As a result, receivables and payables have been netted on February 1, 2019, and are presented as a net receivable balance in Accounts receivable, net in the Consolidated Balance Sheets. At February 1, 2019, the Company recorded a $0.1 million net receivable balance from Sears Holdings in Accounts receivable, net and $0 in Accounts payable in the Consolidated Balance Sheets. On February 2, 2018 the Company recorded $2.0 million in Accounts receivable net, to reflect amounts due from Sears’ Holdings and $2.9 million in Accounts payable to reflect amounts due to Sears Holdings’ in the Consolidated Balance Sheets. In the third quarter Fiscal 2018, the Company recorded a non-cash charge of $2.6 million in Other expense, net, in the Consolidated Statement of Operations due to establishing a reserve against the indemnification asset related to the indemnification by Sears Holdings Corporation of the pre-Separation UTBs (including penalties and interest) for which Sears Holdings Corporation is responsible under the Tax Sharing Agreement. Due to the Sears Filing, there is substantial doubt regarding the collectability of this contingent asset. At February 1, 2019 and February 2, 2018, respectively, a $0 and $7.4 million indemnification receivable was recorded in Other assets in the Consolidated Balance Sheets. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 01, 2019 | |
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. Lands’ End is growing its multi-channel distribution network which allows the consumer to interact with our Company with a consistent customer experience whether on company websites, third party marketplaces, at company owned stores or other distribution outlets. As the Company expands this distribution network, and in conjunction with the accelerated closures of Lands' End Shops at Sears, the historical structure of separate reportable segments for retail stores and direct-to-consumer is not representative of the way the current Chief Operating Decision Maker evaluates the business units and allocates resources. Over the early tenure of the Chief Operating Decision Maker, he has developed a method to evaluate the business and allocates resources. As a result, as of February 1, 2019, the Company has updated its segment reporting to better align with its multi-channel strategy. The Company’s operating segments consist of U.S. eCommerce, Outfitters, Europe eCommerce, Japan eCommerce and Retail. The Retail operating segment continues to exist although it is significantly smaller, due to the closing of most Lands' End Shops at Sears. The Company also determined that each of the operating segments share similar economic and other qualitative characteristics, and therefore the results of the operating segments are aggregated into one reportable segment as of February 1, 2019, consistent with its multi-channel business approach. Prior year information has been restated to reflect this change. Net revenue is presented by product channel in the following table: (in thousands) Fiscal 2018 % of Revenue Fiscal 2017 % of Revenue Fiscal 2016 % of Revenue eCommerce $ 1,039,929 71.7 % $ 975,446 69.3 % $ 900,182 67.4 % Outfitters 289,251 19.9 % 258,669 18.4 % 248,967 18.6 % Retail 122,412 8.4 % 172,562 12.3 % 186,611 14.0 % Total Revenue $ 1,451,592 $ 1,406,677 $ 1,335,760 The geographical allocation of Net revenue is based upon where the product is shipped. The following presents summarized geographical information: (in thousands) Fiscal 2018 % of Revenue Fiscal 2017 % of Revenue Fiscal 2016 % of Revenue Net Revenue United States $ 1,245,157 85.8 % $ 1,204,199 85.6 % $ 1,143,529 85.6 % Europe 138,761 9.6 % 134,543 9.6 % 125,410 9.4 % Asia 50,203 3.5 % 48,704 3.5 % 50,030 3.7 % Other 17,471 1.1 % 19,231 1.3 % 16,791 1.3 % Total Revenue $ 1,451,592 $ 1,406,677 $ 1,335,760 (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Property and equipment, net United States $ 140,663 $ 126,015 $ 113,045 Europe 8,773 9,862 9,075 Asia 458 624 716 Total Property and equipment, net $ 149,894 $ 136,501 $ 122,836 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. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Feb. 01, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following: (in thousands) February 1, 2019 February 2, 2018 Accrued employee compensation and benefits 42,439 32,302 Reserve for sales returns and allowances 22,222 11,133 Deferred gift card revenue 18,191 19,272 Accrued property, sales and other taxes 9,131 6,663 Other 11,240 12,744 Deferred revenue 9,051 12,993 Short-term portion of long-term debt 5,150 5,150 Total other current liabilities $ 117,424 $ 100,257 |
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 2018 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 $ 299,825 100.0 % $ 307,945 100.0 % $ 341,570 100.0 % $ 502,252 100.0 % Gross profit 133,025 44.4 % 136,766 44.4 % 150,962 44.2 % 195,303 38.9 % Operating income 2,527 0.8 % 875 0.3 % 8,485 2.5 % 30,712 6.1 % Net (loss) income $ (2,630 ) (0.9 )% $ (5,285 ) (1.7 )% $ 3,294 1.0 % $ 16,211 3.2 % Basic (loss) earnings per common share (1) $ (0.08 ) $ (0.16 ) $ 0.10 $ 0.50 Diluted (loss) earnings per common share (1) $ (0.08 ) $ (0.16 ) $ 0.10 $ 0.50 Fiscal 2017 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 $ 268,365 100.0 % $ 302,190 100.0 % $ 325,489 100.0 % $ 510,633 100.0 % Gross profit 122,643 45.7 % 134,165 44.4 % 141,974 43.6 % 198,421 38.9 % Operating (loss) income (6,720 ) (2.5 )% 174 0.1 % 5,941 1.8 % 29,690 5.8 % Net (loss) income (2) $ (7,839 ) (2.9 )% $ (3,880 ) (1.3 )% $ 162 — % $ 39,752 7.8 % Basic (loss) earnings per common share (1) $ (0.24 ) $ (0.12 ) $ 0.01 $ 1.24 Diluted loss (earnings) per common share (1) $ (0.24 ) $ (0.12 ) $ 0.01 $ 1.24 (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 2017 Net income includes the impacts of the Tax Act reform. See Note 9 , Income Taxes , for additional details. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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 Financial Statements have been prepared in accordance with GAAP. In the opinion of management, all material adjustments 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. |
Fiscal Period, Policy | Fiscal Year The Company's fiscal year end is on the Friday preceding the Saturday closest to January 31 each year. The fiscal periods in this report are presented as follows, unless the context otherwise requires: Fiscal Year Ended Weeks 2018 February 1, 2019 52 2017 February 2, 2018 53 2016 January 27, 2017 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 as well as 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. It also includes deposits in-transit from banks for payments related to third-party credit card and debit card transactions. |
Restricted cash | Restricted cash The Company classifies cash balances pledged as collateral 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 $542 thousand as of February 1, 2019 and $637 thousand as of February 2, 2018 . The Accounts receivable balance on the Consolidated Balance Sheets 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: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Beginning balance $ 637 $ 579 $ 626 Provision 192 187 281 Write-offs (287 ) (129 ) (328 ) Ending balance $ 542 $ 637 $ 579 |
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 net realizable value. 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 88% of total inventory as of February 1, 2019 as well as February 2, 2018 . If the FIFO method of accounting for inventory had been used, the effect on inventory would have been an increase of $1.1 million and $1.0 million as of February 1, 2019 and February 2, 2018 , respectively. 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 $12.5 million and $12.1 million as of February 1, 2019 and February 2, 2018 , 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. The Company had approximately $0.3 million and $0.9 million of trade credits receivable recorded in Accounts receivable, net as of February 1, 2019 and February 2, 2018 , respectively, and an additional $3.5 million of trade credits |
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 $13.5 million and $13.7 million as of February 1, 2019 and February 2, 2018 , 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 $186.9 million , $186.4 million and $193.2 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. These costs are included within Selling and administrative expenses in the accompanying Consolidated 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 February 1, 2019 February 2, 2018 Land — $ 3,459 $ 3,533 Buildings and improvements 15-30 99,400 100,122 Furniture, fixtures and equipment 3-10 62,823 69,940 Computer hardware and software 3-10 146,400 122,336 Leasehold improvements 3-7 6,569 10,329 Assets in development 27,296 23,428 Gross property and equipment 345,947 329,688 Accumulated depreciation (196,053 ) (193,187 ) Total property and equipment, net $ 149,894 $ 136,501 As of February 1, 2019 and February 2, 2018 , assets in development relate primarily to technological investments in the ERP system. Assets placed in service related to the ERP system during Fiscal 2018 were $16.2 million. 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 was $27.6 million , $24.9 million and $19.0 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively |
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Property and Equipment 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. During Fiscal 2018 an impairment of $254 thousand was recognized for property and equipment in two Retail locations. There were no impairments of property and equipment recognized in Fiscal 2017 or Fiscal 2016. |
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 were originally valued in connection with Kmart Holding Corporation's acquisition of Sears Roebuck in March 2005. The Company's impairment evaluation contains multiple uncertainties because it requires management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including forecasting cash flows under different scenarios. We perform goodwill and indefinite-lived intangible asset impairment tests on an annual basis and update these annual impairment tests mid-year 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. If actual results fall short of 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 tests goodwill for impairment using a one-step quantitative test. The quantitative test compares the reporting unit's fair value to its carrying value. An impairment is recorded for any excess carrying value above the reporting unit's fair value, not to exceed the amount of goodwill. The Company estimates fair value 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 using the best information available, 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. Prior to February 1, 2019, the Company had two reporting units, Direct and Retail. Goodwill was allocated to the Direct reporting unit as Retail did not exist at the time of the Kmart Holding Corporation’s acquisition of Sears Roebuck in March 2005. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, the fair value of the reporting unit exceeded its carrying value and as such, the Company did not record a goodwill impairment charge. A reporting unit is an operating segment, or one level below an operating segment, for which discrete financial information is prepared and regularly reviewed by management. As a result of the Fiscal 2018 year end change in operating segments discussed in Note 12, the Company has reassessed the reporting units. At the end of Fiscal 2018, Lands' End's reporting units were identical to the operating segments of U.S. eCommerce, Outfitters, Europe eCommerce, Japan eCommerce and Retail. Goodwill was allocated to these reporting units based on relative fair value resulting in goodwill being allocated to the U.S. eCommerce, Outfitters and Japan eCommerce reporting units. The Europe eCommerce and Retail reporting units were not allocated goodwill. As required, the Company performed an impairment test before the change and after the change. Neither resulted in the recognition of impairment. At the end of Fiscal 2018, the fair value of these reporting units exceeded the carrying value by 56.1% , 30.2% and 36.7% respectively. Goodwill impairment charges may be recognized in future periods to the extent changes in factors or circumstances occur, including deterioration in the macroeconomic environment, retail industry or in the equity markets, deterioration in our performance or our future projections, or changes in our plans for the reporting unit. Indefinite-lived intangible asset impairment assessments The Company's indefinite-lived intangible asset is the Lands' End trade name. Lands' End reviews the trade name for impairment, on an annual basis, by comparing the carrying amount to its fair value, using the income approach. Lands' End determined that the relief from royalty method of the income approach 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 2018 , Fiscal 2017 and Fiscal 2016 , the Company tested the indefinite-lived intangible assets as required. As a result of this testing, in Fiscal 2016 the Company recorded a non-cash pretax trade name impairment charge of approximately $173.0 million to the Intangible asset impairment line in the Consolidated Statements of Operations. During Fiscal 2018 and Fiscal 2017 the fair value exceeded the carrying value by 45.1% and 9.7% respectively and as such, no trade name impairment charges were recorded |
Financial Instruments with Off-Balance-Sheet Risk | Financial Instruments with Off-Balance-Sheet Risk The Company entered into the ABL Facility on November 16, 2017, which provides for maximum borrowings of $ 175.0 million for the Company, subject to a borrowing base. The ABL Facility has a letter of credit sub-limit of $ 70.0 million and will mature no later than November 16, 2022, subject to customary extension provisions provided for therein. The ABL Facility is available for working capital and other general corporate purposes, and was undrawn, 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 $34.5 million and $49.9 million as of February 1, 2019 and February 2, 2018 , respectively. Bad debt expense was $0.2 million , $0.2 million and $0.3 million in Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. At February 1, 2019 and February 2, 2018 accounts receivable included $0.1 million and $2.0 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, net 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 February 1, 2019 and February 2, 2018 . 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 Statements of Changes in Stockholders' Equity. The Company recognized an insignificant gain in Fiscal 2018 , a loss of $4.8 million in Fiscal 2017 and an insignificant loss in Fiscal 2016 , in the accompanying Consolidated Statements of Operations . |
Revenue Recognition | Revenue Recognition Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company's revenue is recognized when control of product passes to customers, which for the eCommerce and Outfitters channels is when the merchandise is expected to be received by the customer and for the Retail channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Company's products transfers to customers, and is presented net of various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. The Company's revenue is disaggregated by channel and geographic location. The Company elected to exclude from revenue, taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and concurrent with revenue-producing activities, and as a result there is no change in presentation from prior comparative periods. Contract Liabilities Contract liabilities consist of payments received in advance of the transfer of control to the customer. As products are delivered and control transfers, the Company recognizes the deferred revenue in Net revenue in the Consolidated Statements of Operations. The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer reported in Other current liabilities in the Consolidated Balance Sheets and amounts recognized through Net revenue for each period presented. The remainder of deferred revenue as of February 1, 2019 is expected to be recognized in Net revenue in the fiscal quarter ending May 4, 2019, as products are delivered to customers. (in thousands) Fiscal 2018 Deferred revenue beginning of period $ 12,993 Deferred revenue recognized in period (12,993 ) Revenue deferred in period 9,051 Deferred revenue end of period $ 9,051 Revenue from gift cards is recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Gift card breakage is recorded within Net revenue in the Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability, included within Other current liabilities in the Consolidated Balance Sheets. The total contract liability related to gift cards issued was $18.2 million and $19.3 million in Fiscal 2018 and Fiscal 2017 respectively. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards: (in thousands) Fiscal 2018 Balance as of beginning of period $ 19,272 Gift cards sold 57,465 Gift cards redeemed (56,502 ) Gift card breakage (984 ) Change in accounting principle (1,060 ) Balance as of February 1, 2019 $ 18,191 Refund Liabilities Refund liabilities, primarily associated with product sales returns and retrospective volume rebates, represent variable consideration and are estimated and recorded as a reduction to Net revenue based on historical experience. As of Fiscal 2018 and Fiscal 2017, $22.2 million and $11.1 million, respectively, of refund liabilities, primarily associated with product returns, were reported in Other current liabilities in the Condensed Consolidated Balance Sheets. Prior to adoption, product return assets and return liabilities were reported net within Other current liabilities. As of the adoption date, the product return assets were reclassified and reported as a component of Prepaid expenses and other current assets, and return liabilities continued to be reported in Other current liabilities in the Company's Consolidated Balance Sheet. |
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 are not included in the Company's Cost of sales. The Company participates to a limited extent in Sears Holdings' Shop Your Way program. Customers earn points issued by SHMC on purchases made in Lands’ End Shops at Sears which may be redeemed to pay for future purchases at Lands’ End Shops at Sears. 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 Shop Your Way program expenses are recorded in Cost of sales in the Consolidated Statements of Operations. 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, 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 |
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 Statements of Operations. See Note 9 , Income Taxes , for further details. The Company performed an evaluation over its deferred tax assets and determined that a valuation allowance is considered necessary. See Note 9 , Income Taxes , for further details on the valuation allowance. Excluding the $173.0 million non-cash impairment charge to the indefinite-lived intangible asset in Fiscal 2016 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. Pursuant to this agreement, Sears Holdings Corporation is generally responsible for all United States federal, state and local UTBs, through the date of the Separation. On October 15, 2018, Sears Holdings Corporation and certain of its subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the Southern District of New York seeking relief under Chapter 11 of Title 11 of the United States Code (collectively the “Sears Filing").As a result of the Sears Filing, the Company believes that the recovery of the UTBs provided by the Tax Sharing Agreement is uncertain. |
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. The Company 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 incurred under this plan was $3.5 million , $3.2 million and $3.3 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders, and is comprised solely of foreign currency translation adjustments, impact of the Tax Act on the translation adjustments and net income (loss). |
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 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 ASC 260, Earnings Per Share . |
New Accounting Pronouncements | New Accounting Pronouncements Income Statement - Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02 , Income Statement - Reporting Comprehensive Income , in response to the Tax Cuts and Jobs Act enacted on December 22, 2017 by the U.S. federal government. The standard eliminates the stranded tax effects resulting from the Tax Cuts and Jobs Act by reclassifying the effect out of Accumulated other comprehensive loss and into Accumulated deficit. This guidance was adopted by the Company during Fourth Quarter 2017 and resulted in a $2.4 million reclassification on the Consolidated Balance Sheets from Accumulated other comprehensive loss to Accumulated deficit in the period the standard was adopted. See Note 9, Income Taxes , for additional details. 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. In First Quarter 2018, the Company adopted the guidance using the modified retrospective method resulting in only those contracts that were open as of the date of adoption requiring assessment. The comparative information presented in the Consolidated Financial Statements was not restated and is reported under the accounting standards in effect for the periods presented. The adoption of this guidance did not have, and is not expected to have, a significant impact on our reported revenue, gross margin or income from operations. Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company's revenue is recognized when control of product passes to customers. Revenue is adjusted for estimated returns and volume rebates with a corresponding liability recorded. Effective in the First Quarter 2018, the Company changed its balance sheet presentation for estimated product returns by reporting a product return asset for the right to receive returned products and a returns liability for amounts expected to be refunded to customers as a result of product returns. The product return asset is reported within Prepaid expenses and other current assets in the Consolidated Balance Sheet. Prior to adoption, product return assets were netted against the returns liability and reported within Other current liabilities. The impact of the adoption was recorded as a non-cash transaction in Other operating assets and Other operating liabilities in the Consolidated Statement of Cash Flows. The returns liability and payments received from customers for future delivery of products are reported within Other current liabilities in the Consolidated Balance Sheet. The adoption of this guidance did not have an impact on the recording of these liabilities. Recognition of Breakage for Certain Prepaid Stored-Value Products The Company sells gift certificates, gift cards and e-certificates (collectively, "gift cards") to customers through both the eCommerce and Retail channels. The gift cards do not have expiration dates. Revenue from gift cards is recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. 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. The Company has evaluated the impacts of this ASU and has identified a change in the timing of recognition of revenue from gift cards. The Company will recognize breakage income over the breakage period for the estimated portion of unredeemed gift cards that is unlikely to be redeemed where the Company does not have an obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property. Previously the Company recognized gift card breakage after three years of no activity, or when the likelihood of redemption was considered remote. This guidance was adopted by the Company during First Quarter 2018 and resulted in a cumulative impact to be recognized as a reduction in Accumulated deficit and Other current liabilities of $1.1 million for estimated gift card breakage occurring prior to Fiscal 2018, under the modified retrospective approach described under the preceding Revenue from Contracts with Customers section. The impact of adoption on the Consolidated Balance Sheet as of February 3, 2018 was: (in thousands) February 2, 2018 (As reported) Impact of Adoption February 3, 2018 Assets: Prepaid expenses and other current assets $ 26,659 $ 10,425 $ 37,084 Liabilities: Other current liabilities 100,257 9,365 109,622 Stockholder' equity: Accumulated deficit (29,810 ) 1,060 (28,750 ) The impact of the new revenue recognition guidance on our Consolidated Balance Sheet as of February 1, 2019 was: (in thousands) Balances Without Adoption Impact of Adoption As Reported Assets: Prepaid expenses and other current assets $ 25,381 $ 11,193 $ 36,574 Liabilities: Other current liabilities 107,259 10,165 117,424 Stockholder' equity: Accumulated deficit (18,188 ) 1,029 (17,159 ) 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 guidance to reduce the current diversity in practice of the classification of certain cash receipts and cash payments within the Consolidated Statement of Cash Flows. This guidance was effective for Lands' End in the first quarter of its Fiscal 2018. The adoption of this guidance did not have a material impact on the Consolidated Statement of Cash Flows. Restricted Cash In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This ASU requires the inclusion of Restricted cash with Cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Consolidated Statement of Cash Flows. This guidance was adopted by the Company during First Quarter 2018. As a result of the adoption, the Company changed the presentation in its Consolidated Statements of Cash Flows for all periods presented. Leases In February 2016 the FASB issued ASU 2016-02, Leases (ASC 842) , which will change how lessees account for leases. For most leases, a liability will be recorded on the balance sheet based on the present value of future lease obligations with a corresponding right-of-use asset. Primarily for those leases currently classified by the Company as operating leases, the Company will recognize a single lease cost, on a straight line basis, based on the combined amortization of the lease obligation and the right-of-use asset. The Company is a lessee under various lease agreements for its retail stores and equipment. These leases are currently accounted for as operating leases as discussed in Note 4, Leases . Upon transition, the Company will recognize a cumulative-effect adjustment to the retained earnings, on the opening balance sheet, in the period of adoption, using a modified retrospective approach. Lands’ End believes the adoption of this ASU will have a material impact on its Consolidated Balance Sheet. The Company plans to elect certain optional practical expedients which include the option to retain the current classification of leases entered into prior to February 1, 2019, and thus does not anticipate a material impact to the Consolidated Statements of Operations or Consolidated Statements of Cash Flows. The Company additionally plans to adopt an optional transition method finalized by the FASB in July 2018 that waives the requirement to apply this ASU in the comparative periods presented within the financial statements in the year of adoption. The Company is also evaluating and implementing changes to our accounting policies, processes, and internal controls to ensure compliance with the standard’s reporting and disclosure requirements as well as implementing a new lease accounting and management system to support the new accounting requirements. The new standard will be adopted in the first quarter of Fiscal 2019 and the Company anticipates that the adoption will result in the recognition of an additional right-of-use asset and operating lease liability under noncancelable operating leases, net of deferred rent payments and tenant improvement allowances, ranging from approximately $16.0 million to $26.0 million as of the date of the adoption. Additionally, the Company expects to record an adjustment to Accumulated deficit related to impairments of right-of-use asset for certain leases. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | The impact of adoption on the Consolidated Balance Sheet as of February 3, 2018 was: (in thousands) February 2, 2018 (As reported) Impact of Adoption February 3, 2018 Assets: Prepaid expenses and other current assets $ 26,659 $ 10,425 $ 37,084 Liabilities: Other current liabilities 100,257 9,365 109,622 Stockholder' equity: Accumulated deficit (29,810 ) 1,060 (28,750 ) The impact of the new revenue recognition guidance on our Consolidated Balance Sheet as of February 1, 2019 was: (in thousands) Balances Without Adoption Impact of Adoption As Reported Assets: Prepaid expenses and other current assets $ 25,381 $ 11,193 $ 36,574 Liabilities: Other current liabilities 107,259 10,165 117,424 Stockholder' equity: Accumulated deficit (18,188 ) 1,029 (17,159 ) |
Schedule of allowance for doubtful accounts | Changes in the balance of the allowance for doubtful accounts are as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Beginning balance $ 637 $ 579 $ 626 Provision 192 187 281 Write-offs (287 ) (129 ) (328 ) Ending balance $ 542 $ 637 $ 579 |
Summary of property and equipment, net | Property and equipment, net consisted of the following: (in thousands) Asset Lives February 1, 2019 February 2, 2018 Land — $ 3,459 $ 3,533 Buildings and improvements 15-30 99,400 100,122 Furniture, fixtures and equipment 3-10 62,823 69,940 Computer hardware and software 3-10 146,400 122,336 Leasehold improvements 3-7 6,569 10,329 Assets in development 27,296 23,428 Gross property and equipment 345,947 329,688 Accumulated depreciation (196,053 ) (193,187 ) Total property and equipment, net $ 149,894 $ 136,501 |
Schedule of accumulated other comprehensive income (loss) | (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Beginning balance: Accumulated other comprehensive loss (net of tax of $2,816, $6,691 and $5,053, respectively) $ (10,592 ) $ (12,426 ) $ (9,384 ) Other comprehensive income (loss) Foreign currency translation adjustments (net of tax of $689, $(1,427) and $1,638, respectively) (2,591 ) 4,282 (3,042 ) Impact of Tax Act — (2,448 ) — Ending balance: Accumulated other comprehensive loss (net of tax of $3,505, $2,816 and $6,691, respectively) $ (13,183 ) $ (10,592 ) $ (12,426 ) |
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 2018 Fiscal 2017 Fiscal 2016 Net income (loss) $ 11,590 $ 28,195 $ (109,782 ) Basic weighted average shares outstanding 32,190 32,076 32,021 Dilutive effect of stock awards 336 34 — Diluted weighted average shares outstanding 32,526 32,110 32,021 Basic earnings (loss) per share $ 0.36 $ 0.88 $ (3.43 ) Diluted earnings (loss) per share $ 0.36 $ 0.88 $ (3.43 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | The Company's income (loss) before income taxes in the United States and in foreign jurisdictions is as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Income (loss) before income taxes: United States $ 16,297 $ 9,011 $ (174,461 ) Foreign (6,666 ) (8,563 ) (4,419 ) Total income (loss) before income taxes $ 9,631 $ 448 $ (178,880 ) |
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 2018 Fiscal 2017 Fiscal 2016 United States $ (1,959 ) $ (27,623 ) $ (70,316 ) Foreign — (124 ) 1,218 Total (benefit) provision $ (1,959 ) $ (27,747 ) $ (69,098 ) (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Current: Federal $ (4,457 ) $ 4,804 $ (2,834 ) State 2,275 330 (229 ) Foreign — (124 ) 1,218 Total current (2,182 ) 5,010 (1,845 ) Deferred: Federal 1,650 (34,901 ) (62,645 ) State (1,427 ) 2,144 (4,608 ) Total deferred 223 (32,757 ) (67,253 ) Total (benefit) provision $ (1,959 ) $ (27,747 ) $ (69,098 ) |
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 2018 Fiscal 2017 Fiscal 2016 Tax at statutory federal income tax rate* 21.0 % 33.8 % 35.0 % State income taxes, net of federal tax benefit 10.0 % 103.5 % 2.7 % Foreign differential (4.6 )% 108.6 % — % Permanent differences 23.4 % 383.1 % (0.7 )% Tax law changes — % (7,793.7 )% — % Repatriation of foreign earnings (38.4 )% 950.9 % — % Uncertain tax benefits (38.6 )% (600.1 )% 0.8 % Change in foreign valuation allowance 19.2 % 509.8 % — % Other, net (12.3 )% 110.6 % 0.8 % Total at effective income tax rate (20.3 )% (6,193.5 )% 38.6 % |
Summary of deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following: (in thousands) February 1, 2019 February 2, 2018 Deferred tax assets: Deferred revenue $ 3,053 $ 3,292 Legal and other reserves 1,714 1,512 Deferred compensation 10,360 4,029 Reserve for returns 2,271 2,301 Inventory 3,690 3,099 Currency translation adjustment - foreign subsidiaries 3,505 2,816 Other 3,041 4,330 Total deferred tax assets 27,634 21,379 Net operating loss carryforward 5,117 2,284 Less valuation allowance (5,079 ) (2,284 ) Net deferred tax assets $ 27,672 $ 21,379 Deferred tax liabilities: Intangible assets $ 62,959 $ 62,754 LIFO reserve 16,382 16,659 Property, plant and equipment 5,098 — Catalog marketing 1,903 1,103 Total deferred tax liabilities 86,342 80,516 Net deferred tax liability $ 58,670 $ 59,137 |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is as follows: Federal, State and Foreign Tax (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Gross UTB balance at beginning of period $ 4,531 $ 6,901 $ 8,311 Tax positions related to the current period—gross increases — — 120 Tax positions related to the prior periods—gross decreases (2,588 ) (2,370 ) (1,530 ) Settlements (485 ) — — Gross UTB balance at end of period $ 1,458 $ 4,531 $ 6,901 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Leases [Abstract] | |
Summary of future operating lease commitments | otal rental expense under operating leases was $19.7 million , $27.2 million and $30.6 million for Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , respectively. Total future commitments under these operating leases as of February 1, 2019 are as follows for the fiscal years ending (in thousands): 2019 $ 10,389 2020 5,698 2021 4,226 2022 3,172 2023 2,174 Thereafter 6,415 Total minimum payments required (1) $ 32,074 (1) Minimum payments have not been reduced by minimum sublease rentals of $4.2 million due in the future under noncancelable subleases. |
Leases Future Lease Commitments
Leases Future Lease Commitments (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
Future Lease Commitments [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2019 $ 10,389 2020 5,698 2021 4,226 2022 3,172 2023 2,174 Thereafter 6,415 Total minimum payments required (1) $ 32,074 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
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 Statements of Operations : (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Deferred Awards $ 4,407 $ 3,212 $ 1,599 Option Awards 748 651 — Performance Awards 1,006 88 631 Total stock-based compensation expense $ 6,161 $ 3,951 $ 2,230 |
Debt (Tables)
Debt (Tables) | 12 Months Ended | |
Feb. 01, 2019 | Jan. 27, 2017 | |
Debt Disclosure [Abstract] | ||
Company's Debt | The Company's debt consisted of the following: February 1, 2019 February 2, 2018 (in thousands) Principal Amount Interest Rate Principal Amount Interest Rate Term Loan Facility, maturing April 4, 2021 $ 490,538 5.77 % $ 495,688 4.82 % ABL Facility, maturing November 16, 2022 — — % — — % 490,538 495,688 Less: current maturities in Other current liabilities 5,150 5,150 Less: unamortized debt issuance costs 2,935 4,290 Long-term debt, net $ 482,453 $ 486,248 | |
Schedule of aggregate scheduled maturities | The Company's aggregate scheduled maturities of the Term Loan Facility as of February 1, 2019 are as follows: (in thousands) Less than 1 year $ 5,150 1 - 2 years 5,150 2 - 3 years 480,238 $ 490,538 | |
Company's borrowing availability under ABL Facility | The following table summarizes the Company's borrowing availability under the ABL Facility: (in thousands) February 1, 2019 February 2, 2018 ABL Facility maximum borrowing $ 175,000 $ 175,000 Outstanding letters of credit 21,111 22,328 Borrowing availability under ABL $ 153,889 $ 152,672 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
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: February 1, 2019 February 2, 2018 (in thousands) Carrying Amount Fair Value Carrying Fair Long-term debt, including short-term portion $ 490,538 $ 460,493 $ 495,688 $ 443,641 |
Related Party Agreements and _2
Related Party Agreements and Transactions (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
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 2018 Fiscal 2017 Fiscal 2016 Rent, CAM and occupancy costs 14,798 22,084 24,727 Rental services, store labor 13,719 21,934 24,052 Financial services and payment processing 1,644 2,455 2,834 Supply chain costs 465 741 979 Total expenses $ 30,626 $ 47,214 $ 52,592 Number of Lands' End Shops at Sears at period end (1) 49 174 216 (1) During Fiscal 2018 , Fiscal 2017 and Fiscal 2016 , 125 , 42 and 9 Lands' End Shops at Sears were closed, respectively. Related party costs charged by Sears Holdings to the Company for general corporate services are as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Sourcing $ 7,530 $ 10,243 $ 10,878 Shop Your Way 933 1,119 2,301 Shared services 190 176 192 Total expenses $ 8,653 $ 11,538 $ 13,371 Related party revenue charged by the Company to Sears Holdings for the use of intellectual property or services is as follows: (in thousands) Fiscal 2018 Fiscal 2017 Fiscal 2016 Call center services $ — $ 1,160 $ 8,207 Outfitters revenue 845 1,045 1,574 Credit card revenue 709 980 1,147 Royalty income 189 213 221 Gift card expense (17 ) (32 ) (32 ) Total $ 1,726 $ 3,366 $ 11,117 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other current liabilities | Other current liabilities consisted of the following: (in thousands) February 1, 2019 February 2, 2018 Accrued employee compensation and benefits 42,439 32,302 Reserve for sales returns and allowances 22,222 11,133 Deferred gift card revenue 18,191 19,272 Accrued property, sales and other taxes 9,131 6,663 Other 11,240 12,744 Deferred revenue 9,051 12,993 Short-term portion of long-term debt 5,150 5,150 Total other current liabilities $ 117,424 $ 100,257 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 27, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | Fiscal 2018 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 $ 299,825 100.0 % $ 307,945 100.0 % $ 341,570 100.0 % $ 502,252 100.0 % Gross profit 133,025 44.4 % 136,766 44.4 % 150,962 44.2 % 195,303 38.9 % Operating income 2,527 0.8 % 875 0.3 % 8,485 2.5 % 30,712 6.1 % Net (loss) income $ (2,630 ) (0.9 )% $ (5,285 ) (1.7 )% $ 3,294 1.0 % $ 16,211 3.2 % Basic (loss) earnings per common share (1) $ (0.08 ) $ (0.16 ) $ 0.10 $ 0.50 Diluted (loss) earnings per common share (1) $ (0.08 ) $ (0.16 ) $ 0.10 $ 0.50 Fiscal 2017 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 $ 268,365 100.0 % $ 302,190 100.0 % $ 325,489 100.0 % $ 510,633 100.0 % Gross profit 122,643 45.7 % 134,165 44.4 % 141,974 43.6 % 198,421 38.9 % Operating (loss) income (6,720 ) (2.5 )% 174 0.1 % 5,941 1.8 % 29,690 5.8 % Net (loss) income (2) $ (7,839 ) (2.9 )% $ (3,880 ) (1.3 )% $ 162 — % $ 39,752 7.8 % Basic (loss) earnings per common share (1) $ (0.24 ) $ (0.12 ) $ 0.01 $ 1.24 Diluted loss (earnings) per common share (1) $ (0.24 ) $ (0.12 ) $ 0.01 $ 1.24 (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 2017 Net income includes the impacts of the Tax Act reform. See Note 9 , Income Taxes , for additional details. |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) - $ / shares | Jan. 27, 2017 | Jan. 29, 2016 |
Class of Stock | ||
Shares outstanding | 32,220,080 | 32,101,793 |
Par value of stock | $ 0.01 | $ 0.01 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | Jan. 29, 2016 | |
Significant Accounting Policies [Line Items} | ||||
Product recall | $ 0 | $ 0 | $ (212) | |
Allowance for Doubtful Accounts Receivable | 542 | 637 | $ 579 | $ 626 |
Reserve for excess and obsolete inventory | 12,500 | 12,100 | ||
Advertising barter transactions | 3800 | |||
Unamortized marketing costs | 13,500 | 13,700 | ||
Marketing expenses | 186,900 | 186,400 | $ 193,200 | |
Line of Credit Facility, Maximum Borrowing Capacity | 175,000 | 175,000 | ||
Accounts receivable, net | 34,549 | 49,860 | ||
Bad debt expense | 192 | 187 | 281 | |
Foreign currency translation adjustments | (4,800) | |||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 173,000 | |
Total self insurance expenses | 17,100 | 16,500 | 18,200 | |
401(k) plan expense | 3,500 | $ 3,200 | 3,300 | |
ABL Facility [Member] | Domestic Letters of Credit | ||||
Significant Accounting Policies [Line Items} | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | |||
UNITED STATES | ||||
Significant Accounting Policies [Line Items} | ||||
Percentage of LIFO inventory | 88.00% | |||
Sears Holdings Corporation | ||||
Significant Accounting Policies [Line Items} | ||||
Selling and administrative expenses allocated from former parent | 30,200 | $ 47,100 | $ 52,900 | |
Accounts Receivable [Member] | Sears Holdings Corporation | ||||
Significant Accounting Policies [Line Items} | ||||
Accounts receivable, net, due from related party | $ 100 | $ 2,000 |
Note 2, Significant Accounting
Note 2, Significant Accounting Policies New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 01, 2019 | Feb. 02, 2018 |
Prepaid Expense and Other Assets | $ 36,574 | ||
Prepaid expenses and other current assets | 36,574 | $ 26,659 | |
Other current liabilities | 117,424 | 100,257 | |
Accumulated deficit | (17,159) | (29,810) | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Prepaid Expense and Other Assets | 11,193 | ||
Prepaid expenses and other current assets | 10,425 | ||
Other current liabilities | 10,165 | 9,365 | |
Accumulated deficit | 1,029 | 1,060 | |
Accounting Standards Update 2014-09 [Member] | |||
Prepaid expenses and other current assets | 37,084 | ||
Other current liabilities | 109,622 | ||
Accumulated deficit | $ (28,750) | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Prepaid Expense and Other Assets | 25,381 | ||
Other current liabilities | 107,259 | ||
Accumulated deficit | $ (18,188) | ||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Minimum [Member] | |||
Operating Lease, Liability | $ 16,000 | ||
Accumulated deficit | 1,000 | ||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Maximum [Member] | |||
Operating Lease, Liability | 26,000 | ||
Accumulated deficit | $ 2,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 637 | $ 579 | $ 626 |
Provision | 192 | 187 | 281 |
Write-offs | (287) | (129) | (328) |
Ending balance | $ 542 | $ 637 | $ 579 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Accounting Policies [Abstract] | |||
Depreciation and amortization | $ 27,558 | $ 24,910 | $ 19,003 |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 345,947 | 329,688 | |
Accumulated depreciation | (196,053) | (193,187) | |
Total property and equipment, net | 149,894 | 136,501 | $ 122,836 |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | 3,459 | 3,533 | |
Buildings and improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | $ 99,400 | 100,122 | |
Buildings and improvements | Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 15 years | ||
Buildings and improvements | Maximum [Member] | |||
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 | $ 62,823 | 69,940 | |
Furniture, fixtures and equipment | Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 3 years | ||
Furniture, fixtures and equipment | Maximum [Member] | |||
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 | $ 146,400 | 122,336 | |
Computer hardware and software | Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 3 years | ||
Computer hardware and software | Maximum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 10 years | ||
Leasehold improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property and equipment | $ 6,569 | 10,329 | |
Leasehold improvements | Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Asset lives of property and equipment | 3 years | ||
Leasehold improvements | Maximum [Member] | |||
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 | $ 27,296 | $ 23,428 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance: Accumulated other comprehensive loss | $ (10,592) | $ (12,426) | $ (9,384) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments (net of tax of $689, $(1,427) and $1,638, respectively) | (2,591) | 4,282 | (3,042) |
Ending balance: Accumulated other comprehensive loss | (13,183) | (10,592) | (12,426) |
Accumulated other comprehensive loss, tax, beginning of period | 2,816 | 6,691 | (9,384) |
Foreign currency translation adjustments, tax | 689 | (3,875) | 16,075 |
Accumulated other comprehensive loss, tax, end of period | 3,505 | 2,816 | 6,691 |
Impacts of Tax Act | $ 0 | $ (2,400) | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2019 | Nov. 02, 2018 | Aug. 03, 2018 | May 04, 2018 | Feb. 02, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 16,211 | $ 3,294 | $ (5,285) | $ (2,630) | $ 39,752 | $ 162 | $ (3,880) | $ (7,839) | $ 11,590 | $ 28,195 | $ (109,782) |
Basic weighted average shares outstanding | 32,190 | 32,076 | 32,021 | ||||||||
Dilutive effect of stock awards (shares) | 336 | 34 | 0 | ||||||||
Diluted weighted average shares outstanding | 32,526 | 32,110 | 32,021 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.10 | $ (0.16) | $ (0.08) | $ 0.36 | $ 0.88 | $ (3.43) | ||||
Diluted earnings per share (in dollars per share) | $ 0.50 | $ 0.10 | $ (0.16) | $ (0.08) | $ 1.24 | $ 0.01 | $ (0.12) | $ (0.24) | $ 0.36 | $ 0.88 | $ (3.43) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Inventory Disclosures (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | Jan. 29, 2016 |
Inventory Trade Credits [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | $ 542 | $ 637 | $ 579 | $ 626 |
FIFO Method Effect | 1,100 | 1,000 | ||
Accounts Receivable [Member] | ||||
Inventory Trade Credits [Line Items] | ||||
Trade Credits Receivable | 300 | $ 900 | ||
Other Current Assets [Member] | ||||
Inventory Trade Credits [Line Items] | ||||
Trade Credits Receivable | $ 3,500 | |||
UNITED STATES | ||||
Inventory Trade Credits [Line Items] | ||||
Percentage of LIFO Inventory | 88.00% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Goodwill [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 173,000 |
US eCommerce [Member] | |||
Goodwill [Line Items] | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 56.10% | ||
Outfitters [Member] | |||
Goodwill [Line Items] | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 30.20% | ||
JAPAN | |||
Goodwill [Line Items] | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 36.70% | ||
Trade Names [Member] | |||
Goodwill [Line Items] | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 45.10% | 9.70% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies Summary of Significant Account Policies - Deferred Revenue Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2019 | Feb. 02, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred Revenue | $ 9,051 | $ 12,993 |
Recognition of Deferred Revenue | (12,993) | |
Deferred Revenue, Additions | $ 9,051 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000 | $ 175,000 | |
Letter of Credit Limit | 70,000 | ||
Depreciation and amortization | 27,558 | 24,910 | $ 19,003 |
Restructuring Reserve | 1,309 | 2,674 | 0 |
Restructuring Reserve, Period Increase (Decrease) | (1,365) | (1,793) | |
Restructuring Reserve, Period Increase (Decrease) | 3,921 | ||
Restructuring Reserve, Settled without Cash | 546 | ||
One-time Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | 608 | 0 |
Restructuring Reserve, Period Increase (Decrease) | (608) | (1,793) | |
Restructuring Reserve, Period Increase (Decrease) | 2,401 | ||
Restructuring Reserve, Settled without Cash | 0 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1,309 | 2,066 | $ 0 |
Restructuring Reserve, Period Increase (Decrease) | $ (757) | 0 | |
Restructuring Reserve, Period Increase (Decrease) | 1,520 | ||
Restructuring Reserve, Settled without Cash | $ 546 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2019 | Feb. 02, 2018 | |
Gift Cards [Line Items] | ||
Gift Card Liability, Current | $ 18,191 | $ 19,272 |
Gift cards sold [Member] | ||
Gift Cards [Line Items] | ||
Increase (Decrease) in Gift Card Liability | 57,465 | |
Gift cards redeemed [Member] | ||
Gift Cards [Line Items] | ||
Increase (Decrease) in Gift Card Liability | (56,502) | |
Gift card breakage [Member] | ||
Gift Cards [Line Items] | ||
Increase (Decrease) in Gift Card Liability | $ (984) |
Summary of Significant Accou_14
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Gift Card Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2019 | Feb. 02, 2018 | |
Gift Cards [Line Items] | ||
Gift Card Liability, Current | $ 18,191 | $ 19,272 |
Adjustments for New Accounting Pronouncement [Member] | ||
Gift Cards [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (1,060) | |
Gift cards sold [Member] | ||
Gift Cards [Line Items] | ||
Increase (Decrease) in Gift Card Liability | 57,465 | |
Gift cards redeemed [Member] | ||
Gift Cards [Line Items] | ||
Increase (Decrease) in Gift Card Liability | (56,502) | |
Gift card breakage [Member] | ||
Gift Cards [Line Items] | ||
Increase (Decrease) in Gift Card Liability | $ (984) |
Income Taxes Income Taxes - Sum
Income Taxes Income Taxes - Summary of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Income (loss) before income taxes: | |||
United States | $ 16,297 | $ 9,011 | $ (174,461) |
Foreign | (6,666) | (8,563) | (4,419) |
Income (loss) before income taxes | $ 9,631 | $ 448 | $ (178,880) |
Income Taxes - Summary the Comp
Income Taxes - Summary the Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Income Tax Expense (Benefit), Continuing Operations, by Jurisdiction [Abstract] | |||
United States | $ (1,959) | $ (27,623) | $ (70,316) |
Foreign | 0 | (124) | 1,218 |
Income Tax Expense (Benefit) | (1,959) | (27,747) | (69,098) |
Current: | |||
Federal | (4,457) | 4,804 | (2,834) |
State | 2,275 | 330 | (229) |
Foreign | 0 | (124) | 1,218 |
Total current | (2,182) | 5,010 | (1,845) |
Deferred: | |||
Federal | 1,650 | (34,901) | (62,645) |
State | (1,427) | 2,144 | (4,608) |
Total deferred | $ 223 | $ (32,757) | $ (67,253) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Income Tax Examination [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 33.80% | 35.00% |
State income taxes, net of federal tax benefit | 10.00% | 103.50% | 2.70% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Percent | (4.60%) | 108.60% | 0.00% |
Permanent differences | 23.40% | 383.10% | (0.70%) |
Tax Law Changes | 0.00% | (7793.70%) | 0.00% |
Repatriation of Earnings | (38.40%) | 950.90% | 0.00% |
Uncertain Tax Benefits | (38.60%) | (600.10%) | 0.80% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 19.20% | 509.80% | 0.00% |
Other, net | (12.30%) | 110.60% | 0.80% |
Total at effective income tax rate | (20.30%) | (6193.50%) | 38.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 |
Deferred tax assets: | ||
Operating Loss Carryforwards | $ 5,117 | $ 2,284 |
Operating Loss Carryforwards, Valuation Allowance | (5,079) | (2,284) |
Deferred Tax Assets, Net | 27,672 | 21,379 |
Deferred revenue | 3,053 | 3,292 |
Legal and other reserves | 1,714 | 1,512 |
Deferred compensation | 10,360 | 4,029 |
Reserve for returns | 2,271 | 2,301 |
Inventory | 3,690 | 3,099 |
Currency translation adjustment - foreign subsidiaries | 3,505 | 2,816 |
Other | 3,041 | 4,330 |
Total deferred tax assets | 27,634 | 21,379 |
Deferred tax liabilities: | ||
Intangible assets | 62,959 | 62,754 |
LIFO reserve | 16,382 | 16,659 |
Property, plant and equipment | 5,098 | 0 |
Catalog marketing | 1,903 | 1,103 |
Total deferred tax liabilities | 86,342 | 80,516 |
Net deferred tax liability | $ 58,670 | $ 59,137 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross UTB balance at beginning of period | $ 4,531 | $ 6,901 | $ 8,311 |
Tax positions related to the current period—gross increases | 0 | 0 | 120 |
Tax positions related to the prior periods—gross decreases | (2,588) | (2,370) | (1,530) |
Settlements | (485) | 0 | 0 |
Gross UTB balance at end of period | $ 1,458 | $ 4,531 | $ 6,901 |
Income Taxes Tax Detail (Detail
Income Taxes Tax Detail (Details) - USD ($) | 12 Months Ended | ||||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | Jan. 29, 2016 | Apr. 04, 2014 | |
Income Tax Examination [Line Items] | |||||
Operating Loss Carryforwards | $ 5,117,000 | $ 2,284,000 | |||
Deferred Tax Assets, Net | $ 27,672,000 | $ 21,379,000 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 33.80% | 35.00% | ||
Unrecognized tax benefits | $ 1,458,000 | $ 4,531,000 | $ 6,901,000 | $ 8,311,000 | |
Amount of interest and penalties recognized | 800,000 | 3,200,000 | |||
Income Tax Examination, Penalties and Interest Accrued, Net of Tax Benefit | 600,000 | 2,500,000 | |||
Deferred tax assets | 27,634,000 | 21,379,000 | |||
Indemnification Receivable | 0 | 7,400,000 | $ 13,700,000 | ||
Indemnification Writedown | 4,800,000 | ||||
Indemnification Reserve | 2,600,000 | ||||
Tax Act Benefit | 30,600,000 | ||||
Deferred Tax Liability Tax Act Adjustment | 29,700,000 | ||||
Transition Tax Liability | 4,300,000 | ||||
State Tax Law Changes | 3,700,000 | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1,200,000 | ||||
State and Local Jurisdiction [Member] | |||||
Income Tax Examination [Line Items] | |||||
Operating Loss Carryforwards | 13,900,000 | ||||
Deferred Tax Assets, Net | 1,000,000 | ||||
Foreign Tax Authority [Member] | |||||
Income Tax Examination [Line Items] | |||||
Operating Loss Carryforwards | 15,200,000 | ||||
Deferred Tax Assets, Net | $ 4,100,000 | ||||
Reduction in Unremitted Foreign Earnings [Domain] | |||||
Income Tax Examination [Line Items] | |||||
Deferred Tax Liability Tax Act Adjustment | $ 5,200,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Rental expense under operating leases | $ 19.7 | $ 27.2 | $ 30.6 |
Leases Lease Maturities (Detail
Leases Lease Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | 72 Months Ended | |||||
Feb. 01, 2025 | Feb. 02, 2024 | Feb. 03, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | Jan. 31, 2020 | Feb. 01, 2025 | |
Scenario, Forecast [Member] | |||||||
Lease Commitments [Line Items] | |||||||
Operating Lease, Payments | $ 6,415 | $ 2,174 | $ 3,172 | $ 4,226 | $ 5,698 | $ 10,389 | $ 32,074 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Feb. 01, 2019 | Jan. 27, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 86 | |
Performance Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense not yet recognized | $ 2.8 | |
Compensation expense not yet recognized, recognition period | 2 years 1 month | |
Deferred Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense not yet recognized | $ 8.1 | |
Compensation expense not yet recognized, recognition period | 1 year 10 months 20 days | |
Option on Securities [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense not yet recognized | $ 1.6 | |
Compensation expense not yet recognized, recognition period | 2 years 1 month | |
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 | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
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 10 months 20 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 | 2 years 1 month | ||
Selling and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | $ 6,161 | $ 3,951 | $ 2,230 |
Selling and administrative expense | Deferred Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | 4,407 | 3,212 | 631 |
Selling and administrative expense | Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | 1,006 | 88 | 1,599 |
Selling and administrative expense | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Stock-based compensation expense | $ 748 | $ 651 | $ 0 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Unvested Stock Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Feb. 01, 2019 | Feb. 02, 2018 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | (86) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 8.73 | $ 0 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 294,000 | $ 422,000 |
Number of Shares [Roll Forward] | ||
Unvested awards, beginning of period (in shares) | 497 | 252 |
Forfeited (in shares) | (46) | (107) |
Unvested awards, end of period (in shares) | 594 | 497 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Unvested awards, beginning of period (in dollars per share) | $ 22.07 | $ 24.42 |
Granted (in dollars per share) | 21.93 | 21.49 |
Unvested awards, end of period (in dollars per share) | $ 21.96 | $ 22.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (151) | (70) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 22.32 | $ 22.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 21.62 | 24.85 |
Performance Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 195,000 | $ 0 |
Number of Shares [Roll Forward] | ||
Unvested awards, beginning of period (in shares) | 15 | 69 |
Forfeited (in shares) | (34) | (13) |
Unvested awards, end of period (in shares) | 176 | 15 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Unvested awards, beginning of period (in dollars per share) | $ 21.94 | $ 26.38 |
Granted (in dollars per share) | 21.90 | 0 |
Unvested awards, end of period (in dollars per share) | $ 21.93 | $ 21.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | (41) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share | $ 0 | $ 28.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 21.90 | $ 25.20 |
Stock-Based Compensation Option
Stock-Based Compensation Options Activity During Year (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Options Activity [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 257 | 343 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 8.73 | $ 8.73 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 343 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $ 0 | $ 8.73 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | (86) | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 8.73 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 0 | $ 0 |
Debt (Details)
Debt (Details) | Nov. 16, 2017USD ($) | Apr. 04, 2014USD ($) | Apr. 04, 2014USD ($) | Feb. 01, 2019USD ($) | Feb. 02, 2018USD ($) | Jan. 27, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | $ 175,000,000 | ||||
Letter of Credit Limit | 70,000,000 | |||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 1,500,000 | |||||
Debt issuance costs | 0 | 1,515,000 | $ 0 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||
Dividends | $ 500,000,000 | 28,195,000 | ||||
Debt Instrument, Fee | 11433 | |||||
ABL Facility [Member] | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Available borrowing under line of credit facility | 153,889,000 | 152,672,000 | ||||
Outstanding letters of credit | $ 21,111,000 | 22,328,000 | ||||
ABL Facility [Member] | Domestic Letters of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0 | |||||
ABL Facility [Member] | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
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 | $ 15,000,000 | ||||
Line of credit facility, covenant terms, minimum fixed charge coverage ratio | 1 | 1 | ||||
Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Secured Debt | $ 515,000,000 | $ 515,000,000 | $ 495,688,000 | |||
Line of credit facility, amortization rate | 1.00% | |||||
Minimum [Member] | Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 0.00% | |||||
Maximum [Member] | Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 50.00% | |||||
London Interbank Offered Rate (LIBOR) | Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Spread on variable rate | 3.25% | |||||
London Interbank Offered Rate (LIBOR) | Minimum [Member] | Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Spread on variable rate | 1.25% | |||||
London Interbank Offered Rate (LIBOR) | Maximum [Member] | Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Spread on variable rate | 1.75% | |||||
Base Rate | Term Loan Facility | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Spread on variable rate | 2.25% | |||||
Base Rate | Minimum [Member] | ABL Facility [Member] | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Spread on variable rate | 0.50% | |||||
Base Rate | Maximum [Member] | ABL Facility [Member] | Secured Debt [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Spread on variable rate | 1.00% |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 |
Debt Disclosure [Abstract] | ||
Less than 1 year | $ 5,150 | |
1 - 2 years | 5,150 | |
2 - 3 years | 480,238 | |
Total aggregate maturities | $ 490,538 | $ 495,688 |
Debt Borrowing availability (De
Debt Borrowing availability (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000 | $ 175,000 |
ABL Facility [Member] | Line of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 21,111 | 22,328 |
Available borrowing under line of credit facility | $ 153,889 | $ 152,672 |
Debt Long Term Debt (Details)
Debt Long Term Debt (Details) $ in Thousands | Nov. 16, 2017 | Feb. 01, 2019USD ($) | Feb. 02, 2018USD ($) | Jan. 27, 2017USD ($) | Apr. 04, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.77% | 4.82% | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000 | $ 175,000 | |||
Deferred revenue | 5,150 | 5,150 | |||
Debt Issuance Costs, Net | 2,935 | 4,290 | |||
Long-term debt, net | 482,453 | 486,248 | |||
Long-term Debt, including short-term portion | 490,538 | 495,688 | |||
Secured Debt [Member] | ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Covenant Terms, Minimum Fixed Charge Coverage Ratio | 1 | ||||
Secured Debt [Member] | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Secured Debt | 495,688 | $ 515,000 | |||
Domestic Letters of Credit | ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0 | ||||
Carrying Amount | Fair Value, Inputs, Level 2 [Member] | Secured Debt [Member] | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, including short-term portion | $ 490,538 | $ 495,688 | |||
Minimum [Member] | Secured Debt [Member] | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Mandatory Prepayment Terms, Percentage of Borrower's Excess Cash Flow | 0.00% | ||||
Maximum [Member] | Secured Debt [Member] | 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 ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000 | $ 175,000 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Feb. 01, 2019 | Feb. 02, 2018 |
Restricted Cash [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 1.9 | $ 2.4 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities Intangible Impairment Loss - unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Fair Value Disclosures - Impairment Loss - Unobservable Inputs [Abstract] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 173,000 |
Intangible asset, net | $ 257,000 | $ 257,000 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities Fair Value of Restricted Cash (Details) - USD ($) $ in Millions | Feb. 01, 2019 | Feb. 02, 2018 |
Restricted Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 1.9 | $ 2.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | $ 257,000,000 | $ 257,000,000 | $ 257,000,000 |
Goodwill | 110,000,000 | 110,000,000 | 110,000,000 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | $ 173,000,000 |
Impairment of goodwill or intangible assets | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 173,000 |
Total intangible asset, net | 257,000 | 257,000 | |
Goodwill | $ 110,000 | $ 110,000 | $ 110,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Impairments (Details) - USD ($) | 12 Months Ended | 24 Months Ended | |
Feb. 01, 2019 | Feb. 02, 2018 | Feb. 01, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 |
Related Party Agreements and _3
Related Party Agreements and Transactions (Details) - USD ($) | 12 Months Ended | |||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | Apr. 04, 2014 | |
Related Party Transaction | ||||
Indemnification Receivable | $ 0 | $ 7,400,000 | $ 13,700,000 | |
Sears Holdings Corporation | ||||
Related Party Transaction | ||||
Related party revenue, net | 1,726,000 | 3,366,000 | $ 11,117,000 | |
Sears Holdings Corporation | Accounts Receivable, Net | ||||
Related Party Transaction | ||||
Accounts receivable, net, due from related party | 100,000 | 2,000,000 | ||
Accounts payable, due to related party | $ 0 | $ 2,900,000 |
Related Party Agreements and _4
Related Party Agreements and Transactions - Schedule of Related Party Costs (Details) - Sears Holdings Corporation $ in Thousands | 12 Months Ended | ||||
Feb. 01, 2019USD ($) | Feb. 02, 2018USD ($) | Jan. 27, 2017USD ($)store_location | Jan. 29, 2016store_location | Jan. 30, 2015store_location | |
Related Party Transaction | |||||
Number of Lands’ End Shops at Sears at period end | 49 | 174 | 216 | ||
Number of Lands' End Shops at Sears closed in period | store_location | 125 | 42 | 9 | ||
Rent, CAM and occupancy costs | |||||
Related Party Transaction | |||||
Related party expenses, net | $ 14,798 | $ 22,084 | $ 24,727 | ||
(in thousands) | |||||
Related Party Transaction | |||||
Related party expenses, net | 13,719 | 21,934 | 24,052 | ||
Financial services and payment processing | |||||
Related Party Transaction | |||||
Related party expenses, net | 1,644 | 2,455 | 2,834 | ||
Financial services and payment processing | |||||
Related Party Transaction | |||||
Related party expenses, net | 465 | 741 | 979 | ||
Total expenses | |||||
Related Party Transaction | |||||
Related party expenses, net | $ 30,626 | $ 47,214 | $ 52,592 |
Related Party Agreements and _5
Related Party Agreements and Transactions - Details of General Corporate Services (Details) - Sears Holdings Corporation - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Sourcing | |||
Related Party Transaction | |||
Related party expenses, net | $ 7,530 | $ 10,243 | $ 10,878 |
Shop Your Way | |||
Related Party Transaction | |||
Related party expenses, net | 933 | 1,119 | 2,301 |
Shared services | |||
Related Party Transaction | |||
Related party expenses, net | 190 | 176 | 192 |
Total expenses | |||
Related Party Transaction | |||
Related party expenses, net | $ 8,653 | $ 11,538 | $ 13,371 |
Related Party Agreements and _6
Related Party Agreements and Transactions - Details of Use of Intellectual Property or Services (Details) - Sears Holdings Corporation $ in Thousands | 12 Months Ended | ||||
Feb. 01, 2019USD ($) | Feb. 02, 2018USD ($) | Jan. 27, 2017USD ($)store_location | Jan. 29, 2016store_location | Jan. 30, 2015store_location | |
Related Party Transaction | |||||
Number of Lands' End Shops at Sears closed in period | store_location | 125 | 42 | 9 | ||
Related party revenue, net | $ 1,726 | $ 3,366 | $ 11,117 | ||
Call center services | |||||
Related Party Transaction | |||||
Related party revenue, net | 0 | 1,160 | 8,207 | ||
Outfitters revenue | |||||
Related Party Transaction | |||||
Related party revenue, net | 845 | 1,045 | 1,574 | ||
Credit card revenue | |||||
Related Party Transaction | |||||
Related party revenue, net | 709 | 980 | 1,147 | ||
Gift card expense | |||||
Related Party Transaction | |||||
Related party revenue, net | (17) | (32) | (32) | ||
Royalty income | |||||
Related Party Transaction | |||||
Related party revenue, net | $ 189 | $ 213 | $ 221 |
Segment Reporting - Details by
Segment Reporting - Details by Product Category, Segment and Geographic Region (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2019 | Nov. 02, 2018 | Aug. 03, 2018 | May 04, 2018 | Feb. 02, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 502,252,000 | $ 341,570,000 | $ 307,945,000 | $ 299,825,000 | $ 510,633,000 | $ 325,489,000 | $ 302,190,000 | $ 268,365,000 | $ 1,451,592,000 | $ 1,406,677,000 | $ 1,335,760,000 |
Sales Revenue, Net, Percentage of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||
Gain (Loss) on Disposition of Assets | (278,000) | (348,000) | (672,000) | ||||||||
Product recall | 0 | 0 | (212,000) | ||||||||
Depreciation and amortization | 27,558,000 | 24,910,000 | 19,003,000 | ||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 173,000,000 | ||||||||
Operating income | $ 30,712,000 | $ 8,485,000 | $ 875,000 | $ 2,527,000 | $ 29,690,000 | $ 5,941,000 | $ 174,000 | $ (6,720,000) | 42,599,000 | 29,085,000 | (152,631,000) |
Interest Expense | 28,909,000 | 25,929,000 | 24,630,000 | ||||||||
Income Tax Expense (Benefit) | (1,959,000) | (27,747,000) | (69,098,000) | ||||||||
Total assets | 1,110,911,000 | 1,124,135,000 | 1,110,911,000 | 1,124,135,000 | |||||||
Total capital expenditures | 44,852,000 | 38,145,000 | 33,319,000 | ||||||||
Total property and equipment, net | 149,894,000 | 136,501,000 | 149,894,000 | 136,501,000 | 122,836,000 | ||||||
Other Nonoperating Income (Expense) | (4,059,000) | (2,708,000) | (1,619,000) | ||||||||
Net Income (Loss) Attributable to Parent | 16,211,000 | $ 3,294,000 | $ (5,285,000) | $ (2,630,000) | 39,752,000 | $ 162,000 | $ (3,880,000) | $ (7,839,000) | 11,590,000 | 28,195,000 | (109,782,000) |
eCommerce [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,039,929,000 | $ 975,446,000 | $ 900,182,000 | ||||||||
Sales Revenue, Net, Percentage of Net Sales | 71.70% | 69.30% | 67.40% | ||||||||
Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 122,412,000 | $ 172,562,000 | $ 186,611,000 | ||||||||
Outfitters [Domain] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Net, Percentage of Net Sales | 8.40% | 12.30% | 14.00% | ||||||||
Outfitters [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 289,251,000 | $ 258,669,000 | $ 248,967,000 | ||||||||
Sales Revenue, Net, Percentage of Net Sales | 19.90% | 18.40% | 18.60% | ||||||||
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,245,157,000 | $ 1,204,199,000 | $ 1,143,529,000 | ||||||||
Sales Revenue, Net, Percentage of Net Sales | 85.80% | 85.60% | 85.60% | ||||||||
Total property and equipment, net | 140,663,000 | 126,015,000 | $ 140,663,000 | $ 126,015,000 | $ 113,045,000 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 138,761,000 | $ 134,543,000 | $ 125,410,000 | ||||||||
Sales Revenue, Net, Percentage of Net Sales | 9.60% | 9.60% | 9.40% | ||||||||
Total property and equipment, net | 8,773,000 | 9,862,000 | $ 8,773,000 | $ 9,862,000 | $ 9,075,000 | ||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 50,203,000 | $ 48,704,000 | $ 50,030,000 | ||||||||
Sales Revenue, Net, Percentage of Net Sales | 3.50% | 3.50% | 3.70% | ||||||||
Total property and equipment, net | $ 458,000 | $ 624,000 | $ 458,000 | $ 624,000 | $ 716,000 | ||||||
Other foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 17,471,000 | $ 19,231,000 | $ 16,791,000 | ||||||||
Sales Revenue, Net, Percentage of Net Sales | 1.10% | 1.30% | 1.30% |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 02, 2018 |
Other Liabilities, Current [Abstract] | ||
Gift Card Liability, Current | $ 18,191 | $ 19,272 |
Reserve for sales returns and allowances | 42,439 | 32,302 |
Deferred gift card revenue | 22,222 | 11,133 |
Accrued property, sales and other taxes | 9,051 | 12,993 |
Other | 9,131 | 6,663 |
Deferred revenue | 5,150 | 5,150 |
Short-term portion of long-term debt | 11,240 | 12,744 |
Total other current liabilities | $ 117,424 | $ 100,257 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2019 | Nov. 02, 2018 | Aug. 03, 2018 | May 04, 2018 | Feb. 02, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 502,252,000 | $ 341,570,000 | $ 307,945,000 | $ 299,825,000 | $ 510,633,000 | $ 325,489,000 | $ 302,190,000 | $ 268,365,000 | $ 1,451,592,000 | $ 1,406,677,000 | $ 1,335,760,000 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 173,000,000 | ||||||||
Gross profit | 195,303,000 | 150,962,000 | 136,766,000 | 133,025,000 | 198,421,000 | 141,974,000 | 134,165,000 | 122,643,000 | 616,056,000 | 597,203,000 | 576,408,000 |
Operating income | 30,712,000 | 8,485,000 | 875,000 | 2,527,000 | 29,690,000 | 5,941,000 | 174,000 | (6,720,000) | 42,599,000 | 29,085,000 | (152,631,000) |
Net income (loss) | $ 16,211,000 | $ 3,294,000 | $ (5,285,000) | $ (2,630,000) | $ 39,752,000 | $ 162,000 | $ (3,880,000) | $ (7,839,000) | $ 11,590,000 | $ 28,195,000 | $ (109,782,000) |
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.10 | $ (0.16) | $ (0.08) | $ 0.36 | $ 0.88 | $ (3.43) | ||||
Diluted earnings per share (in dollars per share) | $ 0.50 | $ 0.10 | $ (0.16) | $ (0.08) | $ 1.24 | $ 0.01 | $ (0.12) | $ (0.24) | $ 0.36 | $ 0.88 | $ (3.43) |
Basic and diluted earnings per common share (in dollars per share) | $ 1.24 | $ 0.01 | $ (0.12) | $ (0.24) | |||||||
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 | 38.90% | 44.20% | 44.40% | 44.40% | 38.90% | 43.60% | 44.40% | 45.70% | |||
Operating income to net sales, percentage | 6.10% | 2.50% | 0.30% | 0.80% | 5.80% | 1.80% | 0.10% | (2.50%) | |||
Net income to net sales, percentage | 3.20% | 1.00% | (1.70%) | (0.90%) | 7.80% | 0.00% | (1.30%) | (2.90%) | |||
Number of common stock shares expected to be distributed by former parent company | 32,190 | 32,076 | 32,021 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2019 | Nov. 02, 2018 | Aug. 03, 2018 | May 04, 2018 | Feb. 02, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Feb. 01, 2019 | Feb. 02, 2018 | Jan. 27, 2017 | |
Subsequent Event [Line Items] | |||||||||||
Cost of sales (excluding depreciation and amortization) | $ 835,536 | $ 809,474 | $ 759,352 | ||||||||
Operating income | $ 30,712 | $ 8,485 | $ 875 | $ 2,527 | $ 29,690 | $ 5,941 | $ 174 | $ (6,720) | 42,599 | 29,085 | (152,631) |
Income Tax Expense (Benefit) | (1,959) | (27,747) | (69,098) | ||||||||
Net income (loss) | $ 16,211 | $ 3,294 | $ (5,285) | $ (2,630) | $ 39,752 | $ 162 | $ (3,880) | $ (7,839) | $ 11,590 | $ 28,195 | $ (109,782) |
Uncategorized Items - le-201902
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 231,668,000 |