Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 27, 2023 | Apr. 05, 2023 | Jul. 29, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | Lands’ End, Inc. | ||
Document Type | 10-K | ||
Trading Symbol | LE | ||
Current Fiscal Year End Date | --01-27 | ||
Entity Common Stock, Shares Outstanding | 32,484,443 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000799288 | ||
Entity Filer Category | Accelerated Filer | ||
Document Period End Date | Jan. 27, 2023 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 195.6 | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-09769 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2512786 | ||
Entity Address, Address Line One | 1 Lands’ End Lane | ||
Entity Address, City or Town | Dodgeville | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53595 | ||
City Area Code | 608 | ||
Local Phone Number | 935-9341 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | BDO USA, LLP | ||
Auditor Location | Madison, WI, United States | ||
Auditor Firm ID | 243 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to the registrant’s 2023 Annual Meeting of Stockholders (the “Proxy Statement”), to be held on June 13, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Income Statement [Abstract] | |||
Net revenue | $ 1,555,429 | $ 1,636,624 | $ 1,427,448 |
Cost of sales (excluding depreciation and amortization) | 961,663 | 945,164 | 821,595 |
Gross profit | 593,766 | 691,460 | 605,853 |
Selling and administrative | 527,374 | 571,767 | 518,897 |
Depreciation and amortization | 38,741 | 39,166 | 37,343 |
Other operating expense, net | 2,926 | 741 | 8,471 |
Total costs and expenses | 569,041 | 611,674 | 564,711 |
Operating income | 24,725 | 79,786 | 41,142 |
Interest expense | 39,768 | 34,445 | 27,754 |
Other (income) expense, net | (364) | (628) | 796 |
(Loss) income before income taxes | (14,679) | 45,969 | 12,592 |
Income tax (benefit) expense | (2,149) | 12,600 | 1,756 |
NET (LOSS) INCOME | $ (12,530) | $ 33,369 | $ 10,836 |
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS | |||
Basic: | $ (0.38) | $ 1.01 | $ 0.33 |
Diluted: | $ (0.38) | $ 0.99 | $ 0.33 |
Basic weighted average common shares outstanding | 33,108 | 32,929 | 32,566 |
Diluted weighted average common shares outstanding | 33,108 | 33,681 | 32,652 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET (LOSS) INCOME | $ (12,530) | $ 33,369 | $ 10,836 |
Foreign currency translation (loss) gain | (4,380) | (1,421) | 1,767 |
COMPREHENSIVE (LOSS) INCOME | $ (16,910) | $ 31,948 | $ 12,603 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 |
Current assets | ||
Cash and cash equivalents | $ 39,557 | $ 34,301 |
Restricted cash | 1,834 | 1,834 |
Accounts receivable, net | 44,928 | 49,668 |
Inventories, net | 425,513 | 384,241 |
Prepaid expenses and other current assets | 44,894 | 36,905 |
Total current assets | 556,726 | 506,949 |
Property and equipment, net | 127,638 | 129,791 |
Operating lease right-of-use asset | 30,325 | 31,492 |
Goodwill | 106,700 | 106,700 |
Intangible asset, net | 257,000 | 257,000 |
Other assets | 3,759 | 4,702 |
TOTAL ASSETS | 1,082,148 | 1,036,634 |
Current liabilities | ||
Current portion of long-term debt | 13,750 | 13,750 |
Accounts payable | 171,557 | 145,802 |
Lease liability - current | 5,414 | 5,617 |
Accrued expenses and other current liabilities | 106,756 | 146,263 |
Total current liabilities | 297,477 | 311,432 |
Long-term borrowings on ABL Facility | 100,000 | |
Long-term debt, net | 223,506 | 234,474 |
Lease liability - long-term | 31,095 | 32,731 |
Deferred tax liabilities | 45,953 | 46,191 |
Other liabilities | 3,365 | 5,110 |
TOTAL LIABILITIES | 701,396 | 629,938 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01 - authorized: 480,000 shares; issued and outstanding: 32,626 and 32,985, respectively | 326 | 330 |
Additional paid-in capital | 366,181 | 374,413 |
Retained earnings | 31,267 | 44,595 |
Accumulated other comprehensive loss | (17,022) | (12,642) |
TOTAL STOCKHOLDERS' EQUITY | 380,752 | 406,696 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,082,148 | $ 1,036,634 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 27, 2023 | Jan. 28, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 480,000,000 | 480,000,000 |
Common stock, shares issued | 32,626,000 | 32,985,000 |
Common stock, shares outstanding | 32,626,000 | 32,985,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (12,530) | $ 33,369 | $ 10,836 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 38,741 | 39,166 | 37,343 |
Amortization of debt issuance costs | 3,176 | 3,194 | 3,110 |
(Gain) loss on disposal of property and equipment | (530) | 741 | 1,303 |
Stock-based compensation | 3,753 | 10,156 | 9,201 |
Deferred income taxes | 927 | (782) | (10,770) |
Goodwill impairment | 3,300 | ||
Long-lived asset impairment | 468 | 400 | |
Other | (775) | (661) | 1,452 |
Change in operating assets and liabilities: | |||
Accounts receivable, net | 4,503 | (13,170) | 15,012 |
Inventories, net | (45,873) | (4,213) | (4,081) |
Accounts payable | 19,938 | 13,089 | (21,208) |
Other operating assets | (8,105) | 4,080 | (376) |
Other operating liabilities | (40,060) | (14,400) | 46,111 |
Net cash (used in) provided by operating activities | (36,367) | 70,569 | 91,633 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Sales of property and equipment | 1,967 | 0 | 0 |
Purchases of property and equipment | (31,806) | (25,238) | (30,149) |
Net cash used in investing activities | (29,839) | (25,238) | (30,149) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings under ABL Facility | 264,000 | 143,000 | 235,000 |
Payments of borrowings under ABL Facility | (164,000) | (168,000) | (210,000) |
Proceeds from issuance on long-term debt, net | 266,750 | ||
Payments on term loan | (13,750) | (13,750) | (388,825) |
Payments for taxes related to net share settlement of equity awards | (4,324) | (5,111) | (483) |
Purchases and retirement of common stock | (8,463) | ||
Payment of debt issuance costs | (1,232) | (5,517) | |
Net cash provided by (used in) financing activities | 73,463 | (45,093) | (103,075) |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (2,001) | 103 | (1,912) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 5,256 | 341 | (43,503) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR | 36,135 | 35,794 | 79,297 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR | 41,391 | 36,135 | 35,794 |
SUPPLEMENTAL CASH FLOW DATA | |||
Unpaid liability to acquire property and equipment | 9,998 | 2,627 | 3,245 |
Income taxes paid, net of refunds | 4,763 | 24,868 | 288 |
Interest paid | $ 34,485 | $ 31,421 | $ 21,595 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Jan. 31, 2020 | $ 348,382 | $ 324 | $ 360,656 | $ 390 | $ (12,988) |
Balance, shares at Jan. 31, 2020 | 32,382 | ||||
Net income (loss) | 10,836 | 10,836 | |||
Cumulative translation adjustment, net of tax | 1,767 | 1,767 | |||
Stock-based compensation expense | 9,201 | 9,201 | |||
Vesting of restricted shares | $ 2 | (2) | |||
Vesting of restricted shares, shares | 299 | ||||
Common stock withheld related to net share settlement of equity awards | (483) | (483) | |||
Common stock withheld related to net share settlement of equity awards, shares | (67) | ||||
Balance at Jan. 29, 2021 | 369,703 | $ 326 | 369,372 | 11,226 | (11,221) |
Balance, shares at Jan. 29, 2021 | 32,614 | ||||
Net income (loss) | 33,369 | 33,369 | |||
Cumulative translation adjustment, net of tax | (1,421) | (1,421) | |||
Stock-based compensation expense | 10,156 | 10,156 | |||
Vesting of restricted shares | $ 4 | (4) | |||
Vesting of restricted shares, shares | 567 | ||||
Common stock withheld related to net share settlement of equity awards | (5,111) | (5,111) | |||
Common stock withheld related to net share settlement of equity awards, shares | (196) | ||||
Balance at Jan. 28, 2022 | 406,696 | $ 330 | 374,413 | 44,595 | (12,642) |
Balance, shares at Jan. 28, 2022 | 32,985 | ||||
Net income (loss) | (12,530) | (12,530) | |||
Cumulative translation adjustment, net of tax | (4,380) | (4,380) | |||
Stock-based compensation expense | 3,753 | 3,753 | |||
Vesting of restricted shares | $ 4 | (4) | |||
Vesting of restricted shares, shares | 673 | ||||
Common stock withheld related to net share settlement of equity awards | (4,324) | (4,324) | |||
Common stock withheld related to net share settlement of equity awards, shares | (236) | ||||
Purchases and retirement of common stock | (8,463) | $ (8) | (7,657) | (798) | |
Purchases and retirement of common stock, shares | (796) | ||||
Balance at Jan. 27, 2023 | $ 380,752 | $ 326 | $ 366,181 | $ 31,267 | $ (17,022) |
Balance, shares at Jan. 27, 2023 | 32,626 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Jan. 27, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | NOTE 1. BACKGROUND AND BASIS OF PRESENTATION Description of Business Lands’ End, Inc. (“Lands’ End” or the “Company”) is a leading digital retailer of casual clothing, swimwear, outerwear, accessories, footwear and home products. Lands’ End offers products online at www.landsend.com , through Company Operated stores and through third-party distribution channels. Terms that are commonly used in the Company’s Notes to the Consolidated Financial Statements are defined as follows: • ABL Facility – Asset-based senior secured credit agreements, providing for a revolving facility, dated as of November 16, 2017, with Wells Fargo, N.A. and certain other lenders, as amended to date • Adjusted EBITDA – Net income/(loss) appearing on the Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and certain significant items • 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 • CARES Act – The Coronavirus Aid, Relief and Economic Security Act signed into law on March 27, 2020 • Company Operated stores – Lands’ End retail stores in the Retail distribution channel • COVID – Coronavirus disease 2019 (COVID-19) caused by severe respiratory syndrome coronavirus 2 (SARS-CoV-2) • Debt Facilities – Collectively, the Term Loan Facility and ABL Facility • Deferred Awards – Time vesting stock awards • EPS – Earnings per share • FASB – Financial Accounting Standards Board • Fiscal 2022 – The 52 weeks ended January 27, 2023 • Fiscal 2021 – The 52 weeks ended January 28, 2022 • Fiscal 2020 – The 52 weeks ended January 29, 2021 • First Quarter 2020 – The 13 weeks ended May 1, 2020 • GAAP – Accounting principles generally accepted in the United States • LIBOR – London inter-bank offered rate • Option Awards – Stock option awards • Performance Awards – Performance-based stock awards • SEC – United States Securities and Exchange Commission • Second Quarter 2022 – The 13 weeks ended July 29, 2022 • Second Quarter 2020 – The 13 weeks ended July 31, 2020 • Target Shares – Number of restricted stock units awarded to a recipient which reflects the number of shares to be delivered based on achievement of target performance goals • Term Loan Facility – Term loan credit agreement, dated as of September 9, 2020, among the Company, Fortress Credit Corp., as Administrative Agent and Collateral Agent, and the lenders party thereto 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 have been reflected for the periods presented. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. Macroeconomic Challenges Macroeconomic issues, such as recent inflationary pressures, have had an impact on the Company’s business. Since apparel purchases are discretionary expenditures that historically have been influenced by domestic and global economic conditions, higher prices of consumer goods due to inflation may result in less discretionary spending for consumers which may negatively impact customer demand and require higher levels of promotion in order to attract and retain customers. These macroeconomic challenges have led to increased cost of raw materials, packaging materials, labor, transportation, energy, fuel and other inputs necessary for the production and distribution of the Company’s products and have negatively impacted the Company’s gross margin. Global Supply Chain Challenges Like many industries, the Company experienced global supply chain challenges that impacted our distribution process, third-party manufacturing partners and logistics partners, including shipping delays due to port congestion and closure of certain third-party manufacturing facilities and production lines. These global supply chain challenges caused manufacturing, transport and receipt of inbound product delays that began to normalize in the second half of Fiscal 2022. The Company experienced increased transportation costs during Fiscal 2021 and the first half of Fiscal 2022. Corporate Restructuring During Second Quarter 2022, the Board of Directors approved a plan to wind down and cease operations of Lands’ End Japan KK. Lands’ End Japan KK represents the Japan eCommerce operating segment. For a discussion on this operating segment, see Note 14, Segment Reporting . The Company incurred one-time closing costs of approximately $ 3.0 million which was recorded in Other operating expense, net in the Consolidated Statements of Operations. See Note 8, Lands’ End Japan Closure . During Second Quarter 2020, the Company reduced approximately 10 % of corporate positions. The Company incurred total severance costs of approximately $ 2.9 million related to the reduction of corporate positions which was recorded in Other operating expense, net in the Consolidated Statements of Operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 27, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2. 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 2022 January 27, 2023 52 2021 January 28, 2022 52 2020 January 29, 2021 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 customer 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 season dates 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 selling periods and, accordingly, typically decrease during the fourth quarter of the fiscal year as inventory is 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. Significant accounting estimates inherent in the preparation of the consolidated financial statements include revenue recognition, including gift card breakage and estimated merchandise returns, inventory valuation, impairment assessments for goodwill, indefinite intangible assets and long-lived assets and income taxes. Actual results could differ from those estimates made by management, which could have a material impact on the Company’s financial position or results of operations. 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. The Company maintains a portion of its cash in Federal Deposit Insurance Corporation (“FDIC”) insured bank deposit accounts which, at times, may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. The Company does not believe, based on the size and strength of the banking institutions used, it is exposed to any significant credit risks in cash. Restricted cash The Company classifies cash balances pledged as collateral as Restricted cash on the Consolidated Balance Sheets. Allowance for Credit Losses The Company provides an allowance for credit losses based on historical loss experience, collection experience, delinquency trends, economic conditions and specific identification. The Accounts receivable balance on the Consolidated Balance Sheets is presented net of the Company’s allowance for credit losses and is comprised of various customer-related accounts receivable. Changes in the balance of the allowance for credit losses are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Beginning balance $ 625 $ 680 Provision 295 158 Write-offs ( 192 ) ( 213 ) Ending balance $ 728 $ 625 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 92 % of total inventory as of January 27, 2023 and 86 % as of January 28, 2022 . If the FIFO method of accounting for inventory had been used, the effect on inventory would have been an increase of $ 1.2 million and $ 0.8 million as of January 27, 2023 and January 28, 2022, 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 $ 13.9 million and $ 15.2 million as of January 27, 2023 and January 28, 2022 , respectively. Deferred Catalog Costs and Marketing Costs incurred for direct response marketing consist primarily of catalog production and mailing costs that are generally amortized within two months from the date catalogs are mailed. Unamortized marketing costs reported as prepaid assets were $ 10.4 million and $ 10.8 million as of January 27, 2023 and January 28, 2022 , 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, digital-related costs and other print media were $ 205.6 million, $ 220.0 million and $ 195.4 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020 , 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 (years) January 27, January 28, Land — $ 3,440 $ 3,468 Buildings and improvements 15 - 30 99,545 102,077 Furniture, fixtures and equipment 3 - 10 59,992 61,751 Computer hardware and software 3 - 10 232,799 211,726 Leasehold improvements 3 - 7 12,761 12,818 Construction in progress 27,235 15,278 Gross property and equipment 435,772 407,118 Less: Accumulated depreciation ( 308,134 ) ( 277,327 ) Total property and equipment, net $ 127,638 $ 129,791 As of both January 27, 2023 and January 28, 2022, construction in progress relates primarily to technological investments. 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 $ 38.7 million, $ 39.2 million and $ 37.3 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020 , respectively. Leases The Company is a lessee under various lease agreements for its Company Operated store locations and certain international distribution and office facilities. All leases are classified as operating leases. The Company’s leases have remaining lease terms ranging from less than one year up to ten years with renewal options. The lease term is defined as the noncancelable portion of the lease term plus any periods covered by an option to extend the lease, if it is reasonably certain that the option will be exercised. The determination of whether an arrangement contains a lease and the classification of a lease, if applicable, is made at lease inception. Lease commencement is the date in which the lessor provides the Company access to, and the right to control, the identified asset. At lease commencement, the Company recognizes a right-of-use asset and a corresponding lease liability measured at the present value of the future minimum lease payments. Minimum lease payments include the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. The right-of-use asset is recorded at the amount of the lease liability, increased for prepaid lease and initial direct costs paid and reduced by any lease incentives. The Company has elected the practical expedient of not recognizing a right-of-use asset or lease liability for short-term leases, which are leases with a term of twelve months or less. Lease payments on short-term leases are expensed as incurred. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient to combine lease and non-lease components. The Company does not have any leases with residual value guarantees or restrictions or covenants imposed by the lease. Due to the absence of an implicit rate in the Company’s lease agreements, the Company estimates its incremental borrowing rate at lease commencement in determining the present value of lease payments for each lease based on the lease term, lease currency and the Company’s credit spread. The yield curve selected at the lease commencement date represents one notch above the Company’s unsecured credit rating, and therefore is considered a close proxy for the incremental borrowing rate the Company would incur for secured debt. In addition to rent payments, the lease agreements contain payments for real estate taxes, insurance, common area maintenance and utilities that are not fixed. The Company accounts for these costs as variable payments and does not include such costs as a lease component. The Company’s leases are classified as operating leases, which are included in the Operating lease right-of-use asset, Lease liability – current and Lease liability – long-term on the Company’s Consolidated Balance Sheets. Lease expense is recognized on a straight-line basis over the lease term and is included in Selling and administrative expense in the Consolidated Statements of Operations. See Note 4, Leases . 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. Company Operated store long-lived assets, including right-of-use assets, are regularly reviewed for impairment indicators. Impairment is assessed at the individual store level which is the lowest level of identifiable cash flows and considers the estimated undiscounted cash flows over the asset’s remaining life. If estimated undiscounted cash flows are insufficient to recover the investment, an impairment loss is recognized equal to the difference between the estimated fair value of the asset and its carrying value, net of salvage, and any costs of disposition. The fair value estimate is generally the discounted amount of estimated store-specific cash flows. During Fiscal 2022, Fiscal 2021 and Fiscal 2020 , the Company recognized impairment of $ 0.5 million, no impairment and $ 0.4 million, respectively, for right-of-use assets and property and equipment of Company Operated store locations. 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 whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Frequently, impairment assessments contain multiple uncertainties because the calculation 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. The Company performs goodwill and indefinite-lived intangible asset impairment tests on an annual basis and updates 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 future impairment 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 of its reporting units 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 discounted cash flow model 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 and estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, weighted average cost of capital and changes in future working capital requirements. During First Quarter 2020, in response to the COVID pandemic, the Company recorded full impairment of the $ 3.3 million of goodwill allocated to the Company’s Japan eCommerce reporting unit in Other operating expense, net in the Consolidated Statements of Operations. As of January 27, 2023 , the total $ 106.7 million of goodwill recorded relates to the Company’s U.S. eCommerce and Outfitters reporting units, in the amount of $ 70.4 million and $ 36.3 million, respectively. At the end of Fiscal 2022 , the fair value of the U.S. eCommerce and Outfitters reporting units exceeded the carrying value by 13.2 % and 26.7 %, respectively, and 91.2 % and 65.5 %, respectively at the end of Fiscal 2021. 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 performance or future projections, or changes in plans for the reporting unit. Indefinite-lived intangible asset impairment assessments The Company’s indefinite-lived intangible asset is the Lands’ End trade name. The Company reviews the trade name for impairment on an annual basis during the fourth fiscal quarter, or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The fair value of the trade name indefinite-lived intangible asset is estimated using the relief from royalty method. The relief from royalty 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 forecasted 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 2022, Fiscal 2021 and Fiscal 2020 , the Company tested the indefinite-lived intangible asset as required resulting in the fair value exceeding the carrying value by 13.3 %, 68.9 % and 61.2 %, respectively. As such, no trade name impairment charges were recorded in any of the periods presented. Financial Instruments with Off-Balance-Sheet Risk The $ 275.0 million ABL Facility includes a $ 70.0 million sublimit for letters of credit and the Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 or (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. The ABL Facility is available for working capital and other general corporate liquidity needs. The balance outstanding as of January 27, 2023 was $ 100.0 million. There was no balance outstanding as of January 28, 2022 . The balance of outstanding letters of credit was $ 10.6 million and $ 23.5 million on January 27, 2023 and January 28, 2022 , respectively. 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, net was $ 44.9 million and $ 49.7 million as of January 27, 2023 and January 28, 2022, respectively. Cash and cash equivalents, accounts receivable, net, accounts payable, accrued expenses and other current liabilities and revolving long-term borrowings on ABL Facility 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 3 valuation techniques as of January 27, 2023 and January 28, 2022. See Note 9, 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. Foreign currency translation losses, net, for Fiscal 2022 and Fiscal 2021 totaled approximately $ 4.4 million and $ 1.4 million, respectively. The Company recognized a foreign exchange transaction loss of $ 1.0 million in Fiscal 2022 , a gain of $ 0.8 million in Fiscal 2021 and a gain of $ 3.4 million in Fiscal 2020 . These are recorded in either Cost of sales (excluding depreciation and amortization) or Selling and administrative in the accompanying Consolidated Statements of Operations based on the underlying nature of the transactions giving rise to the gain or loss. 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 U.S. eCommerce, International, Outfitters and Third Party distribution channels is when the merchandise is expected to be received by the customer and for the Retail distribution 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 distribution channel and geographic location. The Company excludes 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. 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 Accrued expenses and other current liabilities in the Consolidated Balance Sheets and amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of January 27, 2023 is expected to be recognized in Net revenue in the fiscal quarter ending April 28, 2023, as products are delivered to customers. (in thousands) Fiscal 2022 Fiscal 2021 Deferred revenue beginning of period $ 8,560 $ 17,187 Deferred revenue recognized in period ( 8,346 ) ( 16,973 ) Revenue deferred in period 7,270 8,346 Deferred revenue end of period $ 7,484 $ 8,560 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 Accrued expenses and other current liabilities in the Consolidated Balance Sheets. 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 2022 Fiscal 2021 Balance as of beginning of period $ 33,070 $ 26,798 Gift cards sold 65,877 55,107 Gift cards redeemed ( 64,637 ) ( 44,391 ) Gift card breakage ( 1,281 ) ( 4,444 ) Balance as of end of period $ 33,029 $ 33,070 The decrease in gift card breakage in Fiscal 2022 was attributed to a change in accounting estimate recorded in Fiscal 2021 which resulted in an increase in the gift card breakage rate creating a more appropriate rate for the various gift card programs. Gift card breakage in Fiscal 2021 includes a cumulative effect of the change in accounting estimate for prior periods. 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 January 27, 2023 and January 28, 2022 , $ 25.0 million and $ 23.4 million, respectively, of refund liabilities, primarily associated with estimated product returns, were reported in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Cost of Sales Cost of sales are comprised principally of the costs of merchandise sold, inbound shipping and handling, 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. Selling and Administrative Expenses Selling and administrative expenses are comprised principally of payroll and benefits costs, marketing, information technology expenses, third-party services, occupancy costs of Company Operated stores and corporate facilities, and other administrative expenses. All stock-based compensation is recorded in Selling and administrative expenses. See Note 5, Stock-Based Compensation . 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 11, Income Taxes , for further details. The Company performed an evaluation over its deferred tax assets and determined that a valuation allowance is considered necessary for certain jurisdictions. See Note 11, Income Taxes , for further details on the valuation allowance. 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, net of employee contributions, were $ 17.7 million, $ 17.3 million and $ 17.1 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, 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 workers’ compensation self-insured risk. Retirement Benefit Plan 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 expenses incurred under this plan were $ 3.9 million, $ 3.9 million and $ 0.7 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020 , respectively. The decrease in Fiscal 2020 and was attributed to the temporary suspension of the Company’s 401(k) matching contribution in Fiscal 2020. Other Comprehensive (Loss) Income Other comprehensive (loss) income encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments and net income (loss). Fiscal 2022 Fiscal 2021 Fiscal 2020 Beginning balance: Accumulated other comprehensive loss (net of tax of $ 3,361 , $ 2,987 , and $ 3,453 , respectively) $ ( 12,642 ) $ ( 11,221 ) $ ( 12,988 ) Other comprehensive (loss) income Foreign currency translation adjustments (net of tax of $ 1,164 , $ 374 , and $( 466 ), respectively) ( 4,380 ) ( 1,421 ) 1,767 Ending balance: Accumulated other comprehensive loss (net of tax of $ 4,525 , $ 3,361 , and $ 2,987 , respectively) $ ( 17,022 ) $ ( 12,642 ) $ ( 11,221 ) Stock-Based Compensation Stock-based compensation expense for restricted stock units, comprised of both Deferred Awards and Performance Awards, 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. Performance Awards have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. 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 over the requisite service period of the award. The Company recognizes stock-based compensation cost net of estimated forfeitures and revises the estimated forfeitures 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 Deferred Awards and Option awards. Earnings (Loss) per Share The numerator for both basic and diluted EPS is net income (loss) attributable to the Company. The denominator for basic EPS is based upon the number of weighted average shares of the Company’s common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of the Company’s 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) Fiscal 2022 Fiscal 2021 Fiscal 2020 Net (loss) income $ ( 12,530 ) $ 33,369 $ 10,836 Basic weighted average shares outstanding 33,108 32,929 32,566 Dilutive impact of stock awards — 752 86 Diluted weighted average shares outstanding 33,108 33,681 32,652 Basic (loss) earnings per share $ ( 0.38 ) $ 1.01 $ 0.33 Diluted (loss) earnings per share $ ( 0.38 ) $ 0.99 $ 0.33 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 1,186,739 , 93 and 1,093,274 anti-dilutive shares excluded from the diluted weighted average shares outstanding in Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. Repurchases of Common Stock Shares of the Company’s common stock are repurchased by the Company through open market transactions. The par value of the shares retired is charged against Common stock and the remaining purchase price is allocated between Additional paid-in capital and Retained earnings. The portion charged against Additional paid-in capital is determined based on the Additional paid-in capital per share amount recorded in the initial issuance of the shares with the remaining to Retained earnings. For transactions in which the purchase price is less than the price at initial issuance, the full amount is charged against Additional paid-in capital. The total cost of the broker commissions is charged directly to Retained earnings. The Company plans to periodically retire all shares repurchased under the Share Repurchase Program. All shares repurchased prior to the end of Fiscal 2022 have been retired. Recently Adopted Accounting Pronouncements There were no new accounting standards adopted that had an impact on the Company’s financial statements during the 52 weeks ended January 27, 2023. |
Debt
Debt | 12 Months Ended |
Jan. 27, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 3. DEBT ABL Facility The Company’s $ 275.0 million revolving ABL Facility includes $ 70.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The amount available to borrow is the lesser of the $ 275.0 million facility limit and the Borrowing Base which is calculated from Eligible Inventory, Trade Receivables and Credit Card Receivables, all terms as defined in the ABL Facility. The balance outstanding as of January 27, 2023 was $ 100.0 million. There was no balance outstanding as of January 28, 2022 . The balance of outstanding letters of credit was $ 10.6 million and $ 23.5 million as of January 27, 2023 and January 28, 2022, respectively. On July 29, 2021, the Company executed the Third Amendment to the ABL Facility resulting in favorable financial terms compared to the Second Amendment to the ABL Facility and extension of the maturity date of the ABL Facility, as discussed below. The following table summarizes the Company’s maximum borrowing availability under the ABL Facility, before consideration of the Borrowing Base calculation: January 27, 2023 January 28, 2022 (in thousands) Amount Interest Rate Amount Interest Rate ABL Facility limit $ 275,000 $ 275,000 Less: Outstanding borrowings 100,000 6.27 % — —% Less: Outstanding letters of credit 10,557 23,521 Maximum borrowing availability under ABL Facility $ 164,443 $ 251,479 As of January 27, 2023, the amount available to borrow under the ABL Facility, based upon the Borrowing Base calculation, was $ 163.8 million. Long-Term Debt On September 9, 2020, the Company entered into the Term Loan Facility which provided borrowings of $ 275 million. Origination costs, including an Original Issue Discount (“OID”) of 3 % and $ 5.1 million in debt origination fees, were paid in connection with entering into the Term Loan Facility. The OID and the debt origination fees are presented as a direct deduction from the carrying value of the Term Loan Facility and are amortized over the term of the loan to Interest expense in the Consolidated Statements of Operations. The Company’s long-term debt consisted of the following: January 27, 2023 January 28, 2022 (in thousands) Amount Interest Rate Amount Interest Rate Term Loan Facility $ 244,063 14.13 % $ 257,813 10.75 % Less: Current portion of long-term debt 13,750 13,750 Less: Unamortized debt issuance costs 6,807 9,589 Long-term debt, net $ 223,506 $ 234,474 Interest; Fees The Third Amendment to the ABL Facility, effective July 31, 2021 , lowered the applicable margin interest rates applicable to the referenced rate, selected at the borrower’s election, either (1) adjusted LIBOR or (2) a base rate which is the greater of (a) the federal funds rate plus 0.50 %, (b) the one-month LIBOR rate plus 1.00 %, or (c) the Wells Fargo “prime rate”. For all loans, the borrowing margin is based upon the average daily total loans outstanding for the previous quarter. The applicable borrowing margin for LIBOR loans is (i) less than $95.0 million, 1.25 %, (ii) equal to or greater than $95.0 million but less than $180.0 million, 1.50 %, and (iii) greater than or equal to $180.0 million, 1.75 %. For base rate loans, the applicable borrowing margin is (i) less than $95.0 million, 0.50 %, (ii) equal to or greater than $95.0 million but less than $180.0 million, 0.75 %, and (iii) greater than or equal to $180.0 million, 1.00 %. The Third Amendment to the ABL Facility replaced the 0.75 % LIBOR floor with a 0.00 % LIBOR floor. The interest rates per annum applicable to the loans under the Term Loan Facility are based on a fluctuating rate of interest measured by reference to, at the borrower’s election, either (1) an adjusted LIBOR rate (with a minimum rate of 1.00 %) plus 9.75 %, or (2) an alternative base rate (which is the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which shall be no lower than 0.00 % plus ½ of 1.00 %, or (iii) the one month LIBOR rate plus 1.00 % per annum) plus 8.75 %. The ABL Facility fees include (i) commitment fees of 0.25 % based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter and (ii) customary letter of credit fees. As of the end of Fiscal 2022, the Company had borrowings of $ 100.0 million under the ABL Facility. Customary agency fees are payable in respect of the Debt Facilities. Maturity; Amortization and Prepayments The Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. The Term Loan Facility matures on September 9, 2025 and amortizes at a rate equal to 1.25 % per quarter. It is subject to mandatory prepayments in an amount equal to a percentage of the borrower’s excess cash flows in each fiscal year, ranging from 0 % to 75 % depending on the Company’s total leverage ratio, and with the proceeds of certain asset sales, casualty events and extraordinary receipts. The loan could not be voluntarily prepaid during the first two years of its term, without significant penalties. A prepayment premium of 3 % applies to voluntary prepayments and certain mandatory prepayments made after September 9, 2022 and on or prior to September 9, 2023 , 1 % for such prepayments made after September 9, 2023 and on or prior to September 9, 2024 , and no premium on such prepayments thereafter. The Company’s aggregate scheduled maturities of the Term Loan Facility and ABL Facility as of January 27, 2023 are as follows: Scheduled maturities (in thousands) 2023 $ 13,750 2024 13,750 2025 316,563 2026 — 2027 — Total $ 344,063 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 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 is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets such as real estate, stock of the subsidiaries and intellectual property, in each case, subject to certain exceptions. The ABL Facility is secured by a second priority interest in the same collateral, with certain exceptions. Representations and Warranties; Covenants Subject to specified exceptions, the Debt Facilities contain various representations and warranties and restrictive covenants that, among other things, restrict Lands’ End, Inc.’s and its subsidiaries’ ability 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. The Term Loan Facility contains certain financial covenants, including a quarterly maximum total leverage ratio test, a weekly minimum liquidity test and an annual maximum capital expenditure amount. Under the ABL Facility, if excess availability falls below the greater of 10 % of the Loan Cap amount or $ 15.0 million, the Company will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0. 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. As of January 27, 2023, the Company was in compliance with all covenants related to the Debt Facilities. 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 default to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, material judgments and change of control. |
Leases
Leases | 12 Months Ended |
Jan. 27, 2023 | |
Leases [Abstract] | |
Leases | NOTE 4. LEASES The following table summarizes the Company’s components of lease expense, primarily related to Company Operated stores, which is included in Selling and administrative expense in the Consolidated Statements of Operations : (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Operating lease expense $ 7,466 $ 8,273 $ 8,516 Variable lease expense 2,714 2,312 2,303 Ending balance $ 10,180 $ 10,585 $ 10,819 Short-term lease cost was not material for Fiscal 2022 or Fiscal 2021. Supplemental balance sheet information related to operating leases are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Operating lease right-of-use asset $ 30,325 $ 31,492 Lease liability – current 5,414 5,617 Lease liability – long-term 31,095 32,731 Weighted average remaining lease term in years 6.6 6.8 Weighted average discount rate 6.36 % 6.55 % Supplemental cash flow information related to operating leases are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Operating cash outflows from operating leases $ 9,154 $ 10,509 $ 8,710 Operating lease right-of-use-assets obtained in exchange for lease liabilities 4,440 1,409 3,406 Maturities of operating lease liabilities as of January 27, 2023 are as follows: (in thousands) 2023 $ 7,516 2024 6,815 2025 6,400 2026 6,343 2027 6,377 Thereafter 11,850 Total operating lease payments $ 45,301 Less imputed interest 8,792 Present value of lease liabilities $ 36,509 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 27, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 5. STOCK-BASED COMPENSATION The Company expenses the fair value of all stock awards over their requisite service period, ensuring that the amount of cumulative stock-based compensation expense recognized at any date is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company has elected to adjust stock-based compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize stock-based compensation expense 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, each of which are granted under the Company’s stockholder approved stock plans, other than inducement grants outside of the Company’s stockholder approved stock plans in accordance with Nasdaq Listing Rule 5635(c)(4): i. 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 . The fair value of Deferred Awards 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 service period and is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. ii. 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. For Performance Awards granted, the Target Shares earned can range from 50 % to 200 % once minimum thresholds have been reached and depend on the achievement of Adjusted EBITDA and revenue performance measures for the cumulative period comprised of three-consecutive fiscal years beginning with the fiscal year of the grant date. The applicable percentage of the Target Shares, as determined by performance, vest after the completion of the applicable three-year performance period and upon determination of achievement of the performance measures by the Compensation Committee of the Board of Directors, and unearned Target Shares are forfeited. The fair value of the Performance Awards granted are 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. Typically, the Company accrues for Performance Awards on a 100 % payout unless it becomes probable that the outcome will be significantly different, or the performance can be accurately measured. iii. 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 over the requisite service period of the award. The fair value of each Option Award is estimated on the grant date using the Black-Scholes option pricing model. 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 2022 Fiscal 2021 Fiscal 2020 Deferred Awards $ 5,744 $ 5,683 $ 5,752 Performance Awards (1) ( 2,090 ) 4,370 2,701 Option Awards 99 103 748 Total stock-based compensation expense $ 3,753 $ 10,156 $ 9,201 (1) Net credit expense for Fiscal 2022 includes a reduction of the accrual for Performance Awards based on actual and projected results relative to performance measures. Deferred Awards The following table summarizes of the Deferred Awards activity for Fiscal 2022 and Fiscal 2021: Fiscal Year Ended January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Unvested Deferred Awards at beginning 913 $ 14.60 1,093 $ 10.86 Granted 503 18.09 247 29.90 Vested ( 398 ) 14.14 ( 401 ) 13.89 Forfeited ( 112 ) 16.94 ( 26 ) 13.46 Unvested Deferred Awards at end 906 $ 16.46 913 $ 14.60 Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $ 8.1 million as of January 27, 2023 , which is expected to be recognized ratably over a weighted average period of 1.9 years. Deferred Awards granted to employees during Fiscal 2022 vest ratably over a period of three years . The total fair value of Deferred Awards vested during Fiscal 2022 was $ 5.6 million. Performance Awards The following table provides a summary of the Performance Awards activity for Fiscal 2022 and Fiscal 2021: Fiscal Year Ended January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Unvested Performance Awards at 436 $ 21.15 393 $ 18.32 Granted 248 20.65 166 29.95 Change in estimate - performance — — 42 15.73 Vested ( 270 ) 15.73 ( 165 ) 21.90 Forfeited ( 59 ) 24.39 — — Unvested Performance Awards at 355 $ 24.39 436 $ 21.15 There was no unrecognized stock-based compensation expense related to unvested Performance Awards as of January 27, 2023 based on actual and projected results relative to performance measures. Performance Awards granted to employees during Fiscal 2022 and Fiscal 2021 vest, if earned, after completion of the applicable three-year performance period. The total fair value of Performance Awards vested during Fiscal 2022 was $ 4.2 million. Options Awards The following table provides a summary of the changes in outstanding Options Awards for Fiscal 2022 . There was no Option Awards activity during Fiscal 2021: Fiscal Year Ended January 27, 2023 Option Awards Weighted (in thousands, except per share amounts) Option Awards outstanding at beginning of year 343 $ 18.66 Granted 168 10.81 Exercised — — Forfeited — — Option Awards outstanding at end of year 511 $ 16.08 The following table provides a summary of information about the Option Awards vested and expected to vest during the contractual term, as well as Option Awards exercisable as of January 27, 2023: Option Awards Weighted Weighted Aggregate Intrinsic Value (in thousands, except per share and contractual life amounts) Option Awards vested and expected to vest 511 6.0 $ 16.08 — Option Awards exercisable 343 4.1 $ 18.66 — Total unrecognized stock-based compensation expense related to Option Awards was approximately $ 1.2 million as of January 27, 2023 , which is expected to be recognized over a weighted average period of 2.8 years. The grant date fair value of the Option Award granted during Fiscal 2022 was estimated at the grant date using the Black Scholes option pricing model with the following assumptions: Risk-free interest rate (1) 4.2 % Expected dividend yield 0.0 % Expected volatility (2) 75.5 % Expected term (in years) (3) 6.0 Grant date fair value per share $ 7.44 (1) The Risk-free interest rate is based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected term of the stock option award. (2) The Expected volatility is estimated based on the historical volatility of the Company’s common stock with a term consistent with the expected term of the stock option award. (3) The Expected term (in years) of the stock option award represents the estimated period of time until exercise and is calculated using the simplified method. The simplified method was used to calculate the Expected term (in years) as the Company does not have sufficient historical experience exercise data to provide a reasonable basis upon which to estimate the expected term of the Option Award. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 27, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | NOTE 6. STOCKHOLDERS’ EQUITY Share Repurchase Program On June 28, 2022, the Company announced that its Board of Directors authorized the Company to repurchase up to $ 50.0 million of the Company’s common stock through February 2, 2024 (the “Share Repurchase Program”). Under the Share Repurchase Program, the Company may repurchase its common stock through open market purchases, in privately negotiated transactions, or by other means in accordance with federal securities laws, including Rule 10b-18 of the Exchange Act. The amount and timing of purchases will be determined by the Company’s management depending upon market conditions and other factors and may be made pursuant to a Rule 10b5-1 trading plan. The Share Repurchase Program may be suspended or discontinued at any time. As of January 27, 2023 , additional purchases of up to $ 41.6 million could be made under the Share Repurchase Program. The following table summarizes the Company’s share repurchases through January 27, 2023: (Shares and $ in thousands except average per share cost) January 27, 2023 January 28, 2022 Number of shares repurchased 796 — Total cost $ 8,447 $ — Average per share cost $ 10.61 $ — The Company retired all shares that were repurchased through the Share Repurchase Program through January 27, 2023. In accordance with the FASB ASC 505—Equity, the par value of the shares retired was charged against Common stock and the remaining purchase price was allocated between Additional paid-in capital and Retained earnings. The portion charged against Additional paid-in capital is determined based on the Additional paid-in capital per share amount recorded in the initial issuance of the shares with the remaining to Retained earnings. Shares repurchased at a price less than that of initial issuance is charged only against Additional paid-in capital. In addition, the total cost of the broker commissions is charged directly to Retained earnings. For all shares retired during the 52 weeks ended January 27, 2023 , $ 7.7 million was charged to Retained earnings. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 27, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: (in thousands) January 27, January 28, Deferred gift card revenue $ 33,029 $ 33,070 Reserve for sales returns and allowances 25,030 23,421 Accrued employee compensation and benefits 18,125 58,833 Deferred revenue 7,484 8,560 Accrued property, sales and other taxes 9,780 11,999 Accrued interest 4,456 2,366 Other 8,852 8,014 Total accrued expenses and other current liabilities $ 106,756 $ 146,263 |
Lands' End Japan Closure
Lands' End Japan Closure | 12 Months Ended |
Jan. 27, 2023 | |
Restructuring and Related Activities [Abstract] | |
Lands' End Japan Closure | NOTE 8. LANDS’ END JAPAN CLOSURE In July 2022, the Board of Directors approved a plan to cease operations of Lands’ End Japan KK, a subsidiary of Lands’ End, Inc. (“Lands’ End Japan”) by the end of Fiscal 2022. Lands’ End Japan comprises the Japan eCommerce operating segment. For a discussion of this operating segment, see Note 14, Segment Reporting . The closing and subsequent disposal of the assets does not represent a strategic shift with a major effect on the consolidated financial condition. Accordingly, the closing of Lands’ End Japan was not presented in the Consolidated Financial Statements as discontinued operations. In August 2022, the Company notified all employees of the closure and commenced closing activities. Liquidation sales commenced in the month of September 2022 through the end of Fiscal 2022. The dissolution of Lands’ End Japan was authorized and approved on January 31, 2023. The Company recorded one-time closing costs for employee severance and benefit costs, early termination and restoration costs of lease facilities and contract cancellation and other costs. The following table summarizes the one-time closing costs of Lands’ End Japan recognized in Other operating expense, net in the Consolidated Statement of Operations for the 52 weeks ended January 27, 2023. (in thousands) January 27, 2023 Employee severance and benefit costs (1) $ 1,795 Early termination and restoration costs of leased facilities 744 Contract cancellation and other costs 448 Total one-time closing costs $ 2,987 (1) Employee severance and benefit costs are approximately $ 1.0 million lower than actual payments due to the reversal of a previously recorded compensation-related accrual. The following table summarizes the accrued closing cost activity related to Lands’ End Japan included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets: (in thousands) Employee Severance and Benefit Costs Leased Facilities Costs Other Closing Costs Total Balance as of July 29, 2022 $ — $ — $ — $ — Estimated costs payable in cash 2,812 749 347 3,908 Cash payments ( 2,076 ) ( 381 ) ( 379 ) ( 2,836 ) Foreign currency translation 331 104 49 484 Balance as of January 27, 2023 $ 1,067 $ 472 $ 17 $ 1,556 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Jan. 27, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | NOTE 9. 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 was $ 1.8 million as of both January 27, 2023 and January 28, 2022 , based on Level 1 inputs. Restricted cash amounts are valued based upon statements received from financial institutions. Carrying values and fair values of other financial instruments in the Consolidated Balance Sheets are as follows: January 27, 2023 January 28, 2022 (in thousands) Carrying Fair Carrying Fair Long-term debt, including current portion $ 244,063 $ 241,728 $ 257,813 $ 256,439 Long-term debt, net is reflected in the Consolidated Balance Sheets at amortized cost. The fair value of debt was determined by management utilizing Level 3 valuation techniques as of January 27, 2023 and January 28, 2022 . There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of January 27, 2023 and January 28, 2022 . |
Goodwill and Indefinite Lived I
Goodwill and Indefinite Lived Intangible Assets | 12 Months Ended |
Jan. 27, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite Lived Intangible Assets | NOTE 10. GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSET The Company’s intangible assets, consisting of a goodwill and trade name, 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 goodwill and indefinite-lived intangible asset: (in thousands) January 27, 2023 January 28, 2022 Goodwill balance $ 106,700 $ 106,700 Trade name balance $ 257,000 $ 257,000 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 First Quarter 2020, in response to the COVID pandemic, the Company recorded goodwill impairment of $ 3.3 million allocated to the Japan eCommerce reporting unit, which is recorded in Other operating expense, net in the Consolidated Statements of Operations. The Company completed its annual impairment test for all reporting units in Fiscal 2022, Fiscal 2021 and Fiscal 2020 and no further impairment charges were recorded. As of January 27, 2023 , the total $ 106.7 million of goodwill recorded relates to the Company’s U.S. eCommerce and Outfitters reporting units, in the amount of $ 70.4 million and $ 36.3 million, respectively. In Fiscal 2022, Fiscal 2021 and Fiscal 2020 , the Company conducted the annual impairment testing of its indefinite-lived intangible asset. There was no impairment of the trade name during any period presented. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 27, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES The Company’s income (loss) before income taxes in the United States and in foreign jurisdictions is as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Income (loss) before income taxes United States $ 4,646 $ 52,963 $ 173 Foreign ( 19,325 ) ( 6,994 ) 12,419 Total (loss) income before income taxes $ ( 14,679 ) $ 45,969 $ 12,592 Certain foreign operations are branches of Lands’ End and are subject to U.S. as well as foreign income tax. The pretax income (loss) by location and the analysis of the income tax provision by taxing jurisdiction are not directly related. The components of the provision for (benefit from) income taxes are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 United States $ ( 3,258 ) $ 12,215 $ 725 Foreign 1,109 385 1,031 Total (benefit) provision $ ( 2,149 ) $ 12,600 $ 1,756 (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Current: Federal $ ( 3,928 ) $ 11,370 $ 8,334 State ( 273 ) 1,627 3,675 Foreign 1,125 385 517 Total current ( 3,076 ) 13,382 12,526 Deferred: Federal 682 ( 1,426 ) ( 8,413 ) State 261 644 ( 2,871 ) Foreign ( 16 ) — 514 Total deferred 927 ( 782 ) ( 10,770 ) Total (benefit) provision $ ( 2,149 ) $ 12,600 $ 1,756 A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Fiscal 2022 Fiscal 2021 Fiscal 2020 Tax at statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 0.1 % 3.9 % 5.0 % Foreign differential 27.2 % ( 5.2 )% 2.7 % Permanent differences ( 3.4 )% 1.9 % 16.8 % CARES Act — % — % ( 24.6 )% Uncertain tax benefits 1.1 % 1.1 % ( 1.6 )% Change in foreign valuation allowance ( 32.4 )% 4.9 % ( 3.8 )% Foreign branches — % — % — % Other, net 1.0 % ( 0.2 )% ( 1.6 )% Total 14.6 % 27.4 % 13.9 % Deferred tax assets and liabilities consisted of the following: (in thousands) January 27, January 28, January 29, Deferred tax assets Deferred revenue $ 5,946 $ 6,528 $ 4,882 Legal accruals 2,053 2,461 3,551 Deferred compensation 10,246 18,328 16,147 Deferred interest 10,011 — — Reserve for returns 2,938 2,958 3,072 Inventory 4,303 3,730 6,390 CTA investment in foreign subsidiaries 4,525 3,361 2,987 Operating lease liabilities 8,112 8,677 9,677 Other 1,980 2,402 2,668 Net operating loss carryforward 11,057 5,211 3,093 Total deferred tax assets 61,171 53,656 52,467 Less valuation allowance ( 11,207 ) ( 6,009 ) ( 3,896 ) Net deferred tax assets $ 49,964 $ 47,647 $ 48,571 Deferred tax liabilities Intangible assets $ 61,715 $ 62,295 $ 62,372 LIFO reserve 21,263 18,118 15,191 Property and equipment 4,461 4,396 8,660 Operating lease right-of-use assets 6,670 7,089 7,882 Catalog advertising 1,808 1,940 1,812 Total deferred tax liabilities 95,917 93,838 95,917 Net deferred tax liability $ 45,953 $ 46,191 $ 47,346 As of January 27, 2023 , the Company had $ 37.2 million of state net operating loss (“NOL”) carryforwards (generating a $ 1.8 million deferred tax asset) available to offset future taxable income. The state NOL carryforwards generally expire between 2024 and 2042 with certain state NOLs generated after 2017 having indefinite carryforward. The Company’s foreign subsidiaries had $ 31.8 million of NOL carryforwards (generating a $ 9.3 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 gross amount of unrecognized tax benefits (“UTBs”) is as follows: Fiscal 2022 Fiscal 2021 Fiscal 2020 Gross UTBs balance at beginning of period $ 1,477 $ 1,012 $ 1,202 Tax positions related to the prior periods - gross ( 180 ) 539 ( 190 ) Settlements — ( 74 ) — Gross UTBs balance at end of period $ 1,297 $ 1,477 $ 1,012 As of January 27, 2023 , the Company had gross UTBs of $ 1.3 million. Of this amount, $ 1.2 million would, if recognized, impact its effective tax rate. The Company does not expect that UTBs will fluctuate significantly in the next 12 months for tax audit settlements and the expiration of the statute of limitations for certain jurisdictions. Tax years 2018 through 2022 remain open for examination by the Internal Revenue Service as well as various state and foreign jurisdictions. The Company classifies interest expense and penalties related to UTBs and interest income on tax overpayments as components of income tax expense. As of January 27, 2023 , the total amount of interest expense and penalties recognized on the balance sheet was $ 0.6 million ($ 0.5 million net of federal benefit). As of January 28, 2022 , the total amount of accrued interest and penalties recognized on the balance sheet was $ 0.6 million ($ 0.5 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. The Company files income tax returns in both the United States and various foreign jurisdictions. Impacts of the CARES Act In response to the COVID pandemic, the CARES Act was signed into law on March 27, 2020. The CARES Act, among other things, includes provisions related to refundable payroll tax credits, deferment of employer side social security payments, net operating loss utilization and carryback periods, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. In Fiscal 2020, the Company recorded a $ 3.1 million benefit related to the technical corrections aspect of the CARES Act related to carryback of net operating losses in years beginning in 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 27, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NO TE 12. 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. Lands’ End is the defendant in three separate lawsuits, each of which allege adverse health events and personal property damage as a result of wearing uniforms manufactured by Lands’ End: (1) Gilbert et al. v. Lands’ End, Inc ., United States District Court for the Western District of Wisconsin, Civil Action No. 3:19-cv-00823-JDP, complaint filed October 3, 2019; (2) Andrews et al. v. Lands’ End, Inc. , United States District Court for the Western District of Wisconsin, Civil Action No. 3:19-cv-01066-JDP, complaint filed on December 31, 2019, on behalf of 521 named plaintiffs, later amended to include 1,089 named plaintiffs; and (3) Davis et al. v. Lands’ End, Inc. and Lands’ End Business Outfitters, Inc. , United States District Court for the Western District of Wisconsin, Case No. 3:20-cv-00195, complaint filed on March 4, 2020. Plaintiffs in Gilbert, Andrews, and Davis seek nationwide class certification on behalf of similarly situated Delta employees. By order dated April 20, 2020, the Court consolidated the Gilbert and Andrews cases (the “Consolidated Wisconsin Action”) and stayed the Davis case. Plaintiffs in the Consolidated Wisconsin Action and Davis each assert that the damages sustained by the members of the proposed class exceed $ 5,000,000 . Plaintiffs in each case seek damages for personal injuries, pain and suffering, severe emotional distress, financial or economic loss, including medical services and expenses, lost income and other compensable injuries. Plaintiffs in the Consolidated Wisconsin Action seek class certification with respect to performance of the uniforms and warranty claims and maintain individual claims for personal injury by numerous named plaintiffs. On August 18, 2021, the Court ruled on several pending motions in the Consolidated Wisconsin Action. The Court denied Plaintiffs’ motion for class certification with respect to performance of the uniforms and warranty claims. The Court denied Plaintiffs’ motion for partial summary judgment regarding crocking claims and granted Lands’ End’s motion for partial summary judgment related to certain warranty claims. In addition, giving effect to both the addition and voluntary dismissal of individual plaintiffs over the course of the litigation, the number of individual plaintiffs had been reduced from 1,089 to 603 as of August 18, 2021. On September 1, 2021, Plaintiffs filed a Rule 23(f) petition, seeking interlocutory review of the Court’s decision denying class certification. On September 22, 2021, the U.S. Court of Appeals for the Seventh Circuit denied plaintiffs’ petition. On July 8, 2022, the Court issued an Opinion and Order in the Consolidated Wisconsin Action (the “July 8 Opinion”), ruling in the Company’s favor on several additional pending motions. The Court granted the Company’s motion to exclude Plaintiffs’ expert opinions because the opinions were not based on reliably applied and scientifically valid methods. Accordingly, because Plaintiffs failed to submit evidence sufficient to show that the uniforms were defective or that a defect in the uniforms caused Plaintiffs’ alleged health problems, the Court granted the Company’s motion for summary judgement on Plaintiffs’ personal injury claims. After giving effect to the July 8 Opinion, the remaining claims under the Consolidated Wisconsin Action related to claims for property damage and breach of warranty. Following these rulings and an order of the court dated December 1, 2022, 277 named Plaintiffs remain in the case who claim they have suffered personal property damage as a result of dye transferring to personal items, with aggregate claims of approximately $ 110,000 in damages. The Court has set a deadline for the parties to voluntarily resolve the outstanding claims. Lands’ End continues to vigorously defend these lawsuits and believes they are without merit. |
Related Party Agreements and Tr
Related Party Agreements and Transactions | 12 Months Ended |
Jan. 27, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Agreements and Transactions | NOTE 13. RELATED PARTY AGREEMENTS AND TRANSACTIONS At the time Sears Holdings Corporation and its consolidated subsidiaries (“Sears Holdings”) distributed 100 % of the outstanding common stock of Lands’ End to its stockholders on April 4, 2014 (“Separation”), ESL Investments, Inc. (“ESL”) beneficially owned significant portions of both the Company’s and Sears Holdings’ outstanding shares of common stock and therefore, Sears Holdings, the Company’s former parent company, was considered a related party. On February 11, 2019, Transform Holdco LLC, an affiliate of ESL, 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. The Company believes that ESL holds a significant portion of the membership interests of Transform Holdco and therefore considers 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) governed specified aspects of the Company’s relationship following the Separation, especially with regards to the Lands’ End Shops at Sears, and (ii) established terms pursuant to which subsidiaries of Sears Holdings provided services to the Company. Some of these agreements were assumed by and assigned to Transform Holdco. None of these agreements remain in effect or are material to the Company. Sourcing The Company contracted with a subsidiary of Sears Holdings, which became a subsidiary of Transform Holdco, to provide agreed upon buying agency services, on a non-exclusive basis, in foreign territories from where the Company purchases merchandise. These sourcing services, primarily based upon quantities purchased, included quality-control functions, regulatory compliance, product claims management and new vendor selection and setup assistance. The Company’s contract for these services expired on June 30, 2020 . There was no expense from these sourcing services in Fiscal 2022 or Fiscal 2021 and $ 2.2 million in Fiscal 2020. These amounts were capitalized into inventory and expensed through cost of goods sold over the course of inventory turns and included in Cost of sales in the Consolidated Statements of Operations. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 27, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 14. SEGMENT REPORTING During Fiscal 2022, the Company’s operating segments consisted of U.S. eCommerce, Europe eCommerce, Japan eCommerce (see Note 8, Lands’ End Japan Closure ), Outfitters, Third Party and Retail. The Company determined that each of the operating segments have similar economic and other qualitative characteristics, thus the results of the operating segments are aggregated into one external reportable segment. Landsʼ End identifies five separate distribution channels for revenue reporting purposes: • U.S. eCommerce offers products through the Company’s eCommerce website. • International offers products primarily to consumers located in Europe and Japan through eCommerce international websites and third-party affiliates. See Note 8, Landsʼ End Japan Closure . • Outfitters sells uniform and logo apparel to businesses and their employees, as well as to student households through school relationships, located primarily in the U.S. • Third Party sells the same products as U.S. eCommerce direct to consumers through third-party marketplace websites and through domestic wholesale customers. • Retail sells products through Company Operated stores. Net revenue is presented by distribution channel in the following table: (in thousands) Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue Fiscal 2020 % of Net Revenue U.S. eCommerce $ 955,752 61.4 % $ 1,027,138 62.8 % $ 961,911 67.4 % International 166,627 10.7 % 220,997 13.5 % 222,878 15.6 % Outfitters 265,898 17.1 % 254,191 15.5 % 174,260 12.2 % Third Party 118,996 7.7 % 86,517 5.3 % 39,945 2.8 % Retail 48,156 3.1 % 47,781 2.9 % 28,454 2.0 % Total Net revenue $ 1,555,429 $ 1,636,624 $ 1,427,448 The geographical allocation of Net revenue is based upon where the product is shipped. The following presents summarized geographical information: (in thousands) Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue Fiscal 2020 % of Net Revenue United States $ 1,368,518 88.0 % $ 1,393,402 85.1 % $ 1,191,346 83.4 % Europe 135,878 8.7 % 179,302 11.0 % 175,011 12.3 % Asia 33,451 2.2 % 44,383 2.7 % 49,725 3.5 % Other 17,582 1.1 % 19,537 1.2 % 11,366 0.8 % Total Net revenue $ 1,555,429 $ 1,636,624 $ 1,427,448 Other than the United States and Europe, no geographic region represented more than 10% of Net revenue. Property and equipment, net by geographical location are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 United States $ 120,311 $ 121,259 $ 136,038 Europe 7,051 7,879 8,267 Asia 276 653 983 Total long-lived assets $ 127,638 $ 129,791 $ 145,288 Other than the United States, no geographic region is greater than 10% of total Property and equipment, net. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 27, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | 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 2022 January 27, 2023 52 2021 January 28, 2022 52 2020 January 29, 2021 52 |
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 customer 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 season dates 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 selling periods and, accordingly, typically decrease during the fourth quarter of the fiscal year as inventory is 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 | 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. Significant accounting estimates inherent in the preparation of the consolidated financial statements include revenue recognition, including gift card breakage and estimated merchandise returns, inventory valuation, impairment assessments for goodwill, indefinite intangible assets and long-lived assets and income taxes. Actual results could differ from those estimates made by management, which could have a material impact on the Company’s financial position or results of operations. |
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. The Company maintains a portion of its cash in Federal Deposit Insurance Corporation (“FDIC”) insured bank deposit accounts which, at times, may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. The Company does not believe, based on the size and strength of the banking institutions used, it is exposed to any significant credit risks in cash. |
Restricted Cash | Restricted cash The Company classifies cash balances pledged as collateral as Restricted cash on the Consolidated Balance Sheets. |
Allowance for Credit Losses | Allowance for Credit Losses The Company provides an allowance for credit losses based on historical loss experience, collection experience, delinquency trends, economic conditions and specific identification. The Accounts receivable balance on the Consolidated Balance Sheets is presented net of the Company’s allowance for credit losses and is comprised of various customer-related accounts receivable. Changes in the balance of the allowance for credit losses are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Beginning balance $ 625 $ 680 Provision 295 158 Write-offs ( 192 ) ( 213 ) Ending balance $ 728 $ 625 |
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 92 % of total inventory as of January 27, 2023 and 86 % as of January 28, 2022 . If the FIFO method of accounting for inventory had been used, the effect on inventory would have been an increase of $ 1.2 million and $ 0.8 million as of January 27, 2023 and January 28, 2022, 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 $ 13.9 million and $ 15.2 million as of January 27, 2023 and January 28, 2022 , respectively. |
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 $ 10.4 million and $ 10.8 million as of January 27, 2023 and January 28, 2022 , 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, digital-related costs and other print media were $ 205.6 million, $ 220.0 million and $ 195.4 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020 , 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 (years) January 27, January 28, Land — $ 3,440 $ 3,468 Buildings and improvements 15 - 30 99,545 102,077 Furniture, fixtures and equipment 3 - 10 59,992 61,751 Computer hardware and software 3 - 10 232,799 211,726 Leasehold improvements 3 - 7 12,761 12,818 Construction in progress 27,235 15,278 Gross property and equipment 435,772 407,118 Less: Accumulated depreciation ( 308,134 ) ( 277,327 ) Total property and equipment, net $ 127,638 $ 129,791 As of both January 27, 2023 and January 28, 2022, construction in progress relates primarily to technological investments. 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 $ 38.7 million, $ 39.2 million and $ 37.3 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020 , respectively. |
Leases | Leases The Company is a lessee under various lease agreements for its Company Operated store locations and certain international distribution and office facilities. All leases are classified as operating leases. The Company’s leases have remaining lease terms ranging from less than one year up to ten years with renewal options. The lease term is defined as the noncancelable portion of the lease term plus any periods covered by an option to extend the lease, if it is reasonably certain that the option will be exercised. The determination of whether an arrangement contains a lease and the classification of a lease, if applicable, is made at lease inception. Lease commencement is the date in which the lessor provides the Company access to, and the right to control, the identified asset. At lease commencement, the Company recognizes a right-of-use asset and a corresponding lease liability measured at the present value of the future minimum lease payments. Minimum lease payments include the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. The right-of-use asset is recorded at the amount of the lease liability, increased for prepaid lease and initial direct costs paid and reduced by any lease incentives. The Company has elected the practical expedient of not recognizing a right-of-use asset or lease liability for short-term leases, which are leases with a term of twelve months or less. Lease payments on short-term leases are expensed as incurred. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient to combine lease and non-lease components. The Company does not have any leases with residual value guarantees or restrictions or covenants imposed by the lease. Due to the absence of an implicit rate in the Company’s lease agreements, the Company estimates its incremental borrowing rate at lease commencement in determining the present value of lease payments for each lease based on the lease term, lease currency and the Company’s credit spread. The yield curve selected at the lease commencement date represents one notch above the Company’s unsecured credit rating, and therefore is considered a close proxy for the incremental borrowing rate the Company would incur for secured debt. In addition to rent payments, the lease agreements contain payments for real estate taxes, insurance, common area maintenance and utilities that are not fixed. The Company accounts for these costs as variable payments and does not include such costs as a lease component. The Company’s leases are classified as operating leases, which are included in the Operating lease right-of-use asset, Lease liability – current and Lease liability – long-term on the Company’s Consolidated Balance Sheets. Lease expense is recognized on a straight-line basis over the lease term and is included in Selling and administrative expense in the Consolidated Statements of Operations. See Note 4, Leases . |
Impairment of Property and Equipment | 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. Company Operated store long-lived assets, including right-of-use assets, are regularly reviewed for impairment indicators. Impairment is assessed at the individual store level which is the lowest level of identifiable cash flows and considers the estimated undiscounted cash flows over the asset’s remaining life. If estimated undiscounted cash flows are insufficient to recover the investment, an impairment loss is recognized equal to the difference between the estimated fair value of the asset and its carrying value, net of salvage, and any costs of disposition. The fair value estimate is generally the discounted amount of estimated store-specific cash flows. During Fiscal 2022, Fiscal 2021 and Fiscal 2020 , the Company recognized impairment of $ 0.5 million, no impairment and $ 0.4 million, respectively, for right-of-use assets and property and equipment of Company Operated store locations. |
Goodwill and Indefinite-lived 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 whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Frequently, impairment assessments contain multiple uncertainties because the calculation 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. The Company performs goodwill and indefinite-lived intangible asset impairment tests on an annual basis and updates 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 future impairment 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 of its reporting units 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 discounted cash flow model 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 and estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, weighted average cost of capital and changes in future working capital requirements. During First Quarter 2020, in response to the COVID pandemic, the Company recorded full impairment of the $ 3.3 million of goodwill allocated to the Company’s Japan eCommerce reporting unit in Other operating expense, net in the Consolidated Statements of Operations. As of January 27, 2023 , the total $ 106.7 million of goodwill recorded relates to the Company’s U.S. eCommerce and Outfitters reporting units, in the amount of $ 70.4 million and $ 36.3 million, respectively. At the end of Fiscal 2022 , the fair value of the U.S. eCommerce and Outfitters reporting units exceeded the carrying value by 13.2 % and 26.7 %, respectively, and 91.2 % and 65.5 %, respectively at the end of Fiscal 2021. 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 performance or future projections, or changes in plans for the reporting unit. Indefinite-lived intangible asset impairment assessments The Company’s indefinite-lived intangible asset is the Lands’ End trade name. The Company reviews the trade name for impairment on an annual basis during the fourth fiscal quarter, or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The fair value of the trade name indefinite-lived intangible asset is estimated using the relief from royalty method. The relief from royalty 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 forecasted 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 2022, Fiscal 2021 and Fiscal 2020 , the Company tested the indefinite-lived intangible asset as required resulting in the fair value exceeding the carrying value by 13.3 %, 68.9 % and 61.2 %, respectively. As such, no trade name impairment charges were recorded in any of the periods presented. |
Financial Instruments with Off-Balance-Sheet Risk | Financial Instruments with Off-Balance-Sheet Risk The $ 275.0 million ABL Facility includes a $ 70.0 million sublimit for letters of credit and the Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 or (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. The ABL Facility is available for working capital and other general corporate liquidity needs. The balance outstanding as of January 27, 2023 was $ 100.0 million. There was no balance outstanding as of January 28, 2022 . The balance of outstanding letters of credit was $ 10.6 million and $ 23.5 million on January 27, 2023 and January 28, 2022 , respectively. |
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, net was $ 44.9 million and $ 49.7 million as of January 27, 2023 and January 28, 2022, respectively. Cash and cash equivalents, accounts receivable, net, accounts payable, accrued expenses and other current liabilities and revolving long-term borrowings on ABL Facility 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 3 valuation techniques as of January 27, 2023 and January 28, 2022. See Note 9, Fair Value of Financial Assets and Liabilities . |
Foreign Currency Transactions and Translations | 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. Foreign currency translation losses, net, for Fiscal 2022 and Fiscal 2021 totaled approximately $ 4.4 million and $ 1.4 million, respectively. The Company recognized a foreign exchange transaction loss of $ 1.0 million in Fiscal 2022 , a gain of $ 0.8 million in Fiscal 2021 and a gain of $ 3.4 million in Fiscal 2020 . These are recorded in either Cost of sales (excluding depreciation and amortization) or Selling and administrative in the accompanying Consolidated Statements of Operations based on the underlying nature of the transactions giving rise to the gain or loss. |
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 U.S. eCommerce, International, Outfitters and Third Party distribution channels is when the merchandise is expected to be received by the customer and for the Retail distribution 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 distribution channel and geographic location. The Company excludes 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. 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 Accrued expenses and other current liabilities in the Consolidated Balance Sheets and amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of January 27, 2023 is expected to be recognized in Net revenue in the fiscal quarter ending April 28, 2023, as products are delivered to customers. (in thousands) Fiscal 2022 Fiscal 2021 Deferred revenue beginning of period $ 8,560 $ 17,187 Deferred revenue recognized in period ( 8,346 ) ( 16,973 ) Revenue deferred in period 7,270 8,346 Deferred revenue end of period $ 7,484 $ 8,560 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 Accrued expenses and other current liabilities in the Consolidated Balance Sheets. 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 2022 Fiscal 2021 Balance as of beginning of period $ 33,070 $ 26,798 Gift cards sold 65,877 55,107 Gift cards redeemed ( 64,637 ) ( 44,391 ) Gift card breakage ( 1,281 ) ( 4,444 ) Balance as of end of period $ 33,029 $ 33,070 The decrease in gift card breakage in Fiscal 2022 was attributed to a change in accounting estimate recorded in Fiscal 2021 which resulted in an increase in the gift card breakage rate creating a more appropriate rate for the various gift card programs. Gift card breakage in Fiscal 2021 includes a cumulative effect of the change in accounting estimate for prior periods. 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 January 27, 2023 and January 28, 2022 , $ 25.0 million and $ 23.4 million, respectively, of refund liabilities, primarily associated with estimated product returns, were reported in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Cost of Sales | Cost of Sales Cost of sales are comprised principally of the costs of merchandise sold, inbound shipping and handling, 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. |
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses are comprised principally of payroll and benefits costs, marketing, information technology expenses, third-party services, occupancy costs of Company Operated stores and corporate facilities, and other administrative expenses. All stock-based compensation is recorded in Selling and administrative expenses. See Note 5, Stock-Based Compensation . |
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 11, Income Taxes , for further details. The Company performed an evaluation over its deferred tax assets and determined that a valuation allowance is considered necessary for certain jurisdictions. See Note 11, Income Taxes , for further details on the valuation allowance. |
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. Total expenses, net of employee contributions, were $ 17.7 million, $ 17.3 million and $ 17.1 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020, 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 workers’ compensation self-insured risk. |
Retirement Benefit Plan | Retirement Benefit Plan 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 expenses incurred under this plan were $ 3.9 million, $ 3.9 million and $ 0.7 million for Fiscal 2022, Fiscal 2021 and Fiscal 2020 , respectively. The decrease in Fiscal 2020 and was attributed to the temporary suspension of the Company’s 401(k) matching contribution in Fiscal 2020. |
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income Other comprehensive (loss) income encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments and net income (loss). Fiscal 2022 Fiscal 2021 Fiscal 2020 Beginning balance: Accumulated other comprehensive loss (net of tax of $ 3,361 , $ 2,987 , and $ 3,453 , respectively) $ ( 12,642 ) $ ( 11,221 ) $ ( 12,988 ) Other comprehensive (loss) income Foreign currency translation adjustments (net of tax of $ 1,164 , $ 374 , and $( 466 ), respectively) ( 4,380 ) ( 1,421 ) 1,767 Ending balance: Accumulated other comprehensive loss (net of tax of $ 4,525 , $ 3,361 , and $ 2,987 , respectively) $ ( 17,022 ) $ ( 12,642 ) $ ( 11,221 ) |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for restricted stock units, comprised of both Deferred Awards and Performance Awards, 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. Performance Awards have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. 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 over the requisite service period of the award. The Company recognizes stock-based compensation cost net of estimated forfeitures and revises the estimated forfeitures 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 Deferred Awards and Option awards. |
Earnings (Loss) Per Share | Earnings (Loss) per Share The numerator for both basic and diluted EPS is net income (loss) attributable to the Company. The denominator for basic EPS is based upon the number of weighted average shares of the Company’s common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of the Company’s 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) Fiscal 2022 Fiscal 2021 Fiscal 2020 Net (loss) income $ ( 12,530 ) $ 33,369 $ 10,836 Basic weighted average shares outstanding 33,108 32,929 32,566 Dilutive impact of stock awards — 752 86 Diluted weighted average shares outstanding 33,108 33,681 32,652 Basic (loss) earnings per share $ ( 0.38 ) $ 1.01 $ 0.33 Diluted (loss) earnings per share $ ( 0.38 ) $ 0.99 $ 0.33 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 1,186,739 , 93 and 1,093,274 anti-dilutive shares excluded from the diluted weighted average shares outstanding in Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. Repurchases of Common Stock Shares of the Company’s common stock are repurchased by the Company through open market transactions. The par value of the shares retired is charged against Common stock and the remaining purchase price is allocated between Additional paid-in capital and Retained earnings. The portion charged against Additional paid-in capital is determined based on the Additional paid-in capital per share amount recorded in the initial issuance of the shares with the remaining to Retained earnings. For transactions in which the purchase price is less than the price at initial issuance, the full amount is charged against Additional paid-in capital. The total cost of the broker commissions is charged directly to Retained earnings. The Company plans to periodically retire all shares repurchased under the Share Repurchase Program. All shares repurchased prior to the end of Fiscal 2022 have been retired. |
Repurchase of Common Stock | Repurchases of Common Stock Shares of the Company’s common stock are repurchased by the Company through open market transactions. The par value of the shares retired is charged against Common stock and the remaining purchase price is allocated between Additional paid-in capital and Retained earnings. The portion charged against Additional paid-in capital is determined based on the Additional paid-in capital per share amount recorded in the initial issuance of the shares with the remaining to Retained earnings. For transactions in which the purchase price is less than the price at initial issuance, the full amount is charged against Additional paid-in capital. The total cost of the broker commissions is charged directly to Retained earnings. The Company plans to periodically retire all shares repurchased under the Share Repurchase Program. All shares repurchased prior to the end of Fiscal 2022 have been retired. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements There were no new accounting standards adopted that had an impact on the Company’s financial statements during the 52 weeks ended January 27, 2023. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Losses | Changes in the balance of the allowance for credit losses are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Beginning balance $ 625 $ 680 Provision 295 158 Write-offs ( 192 ) ( 213 ) Ending balance $ 728 $ 625 |
Summary of Property and Equipment, Net | As of the balance sheet dates, Property and equipment, net consisted of the following: (in thousands) Asset Lives (years) January 27, January 28, Land — $ 3,440 $ 3,468 Buildings and improvements 15 - 30 99,545 102,077 Furniture, fixtures and equipment 3 - 10 59,992 61,751 Computer hardware and software 3 - 10 232,799 211,726 Leasehold improvements 3 - 7 12,761 12,818 Construction in progress 27,235 15,278 Gross property and equipment 435,772 407,118 Less: Accumulated depreciation ( 308,134 ) ( 277,327 ) Total property and equipment, net $ 127,638 $ 129,791 |
Deferred Revenue Disclosure | The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer reported in Accrued expenses and other current liabilities in the Consolidated Balance Sheets and amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of January 27, 2023 is expected to be recognized in Net revenue in the fiscal quarter ending April 28, 2023, as products are delivered to customers. (in thousands) Fiscal 2022 Fiscal 2021 Deferred revenue beginning of period $ 8,560 $ 17,187 Deferred revenue recognized in period ( 8,346 ) ( 16,973 ) Revenue deferred in period 7,270 8,346 Deferred revenue end of period $ 7,484 $ 8,560 |
Gift Card Reconciliation | The following table provides the reconciliation of the contract liability related to gift cards: (in thousands) Fiscal 2022 Fiscal 2021 Balance as of beginning of period $ 33,070 $ 26,798 Gift cards sold 65,877 55,107 Gift cards redeemed ( 64,637 ) ( 44,391 ) Gift card breakage ( 1,281 ) ( 4,444 ) Balance as of end of period $ 33,029 $ 33,070 |
Schedule of Other Comprehensive (Loss) Income | Other comprehensive (loss) income encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments and net income (loss). Fiscal 2022 Fiscal 2021 Fiscal 2020 Beginning balance: Accumulated other comprehensive loss (net of tax of $ 3,361 , $ 2,987 , and $ 3,453 , respectively) $ ( 12,642 ) $ ( 11,221 ) $ ( 12,988 ) Other comprehensive (loss) income Foreign currency translation adjustments (net of tax of $ 1,164 , $ 374 , and $( 466 ), respectively) ( 4,380 ) ( 1,421 ) 1,767 Ending balance: Accumulated other comprehensive loss (net of tax of $ 4,525 , $ 3,361 , and $ 2,987 , respectively) $ ( 17,022 ) $ ( 12,642 ) $ ( 11,221 ) |
Schedule of Components of Basic and Diluted EPS | The following table summarizes the components of basic and diluted EPS: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Net (loss) income $ ( 12,530 ) $ 33,369 $ 10,836 Basic weighted average shares outstanding 33,108 32,929 32,566 Dilutive impact of stock awards — 752 86 Diluted weighted average shares outstanding 33,108 33,681 32,652 Basic (loss) earnings per share $ ( 0.38 ) $ 1.01 $ 0.33 Diluted (loss) earnings per share $ ( 0.38 ) $ 0.99 $ 0.33 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Company's Maximum Borrowing Availability Under ABL Facility | The following table summarizes the Company’s maximum borrowing availability under the ABL Facility, before consideration of the Borrowing Base calculation: January 27, 2023 January 28, 2022 (in thousands) Amount Interest Rate Amount Interest Rate ABL Facility limit $ 275,000 $ 275,000 Less: Outstanding borrowings 100,000 6.27 % — —% Less: Outstanding letters of credit 10,557 23,521 Maximum borrowing availability under ABL Facility $ 164,443 $ 251,479 |
Schedule of Company's Long Term Debt | The Company’s long-term debt consisted of the following: January 27, 2023 January 28, 2022 (in thousands) Amount Interest Rate Amount Interest Rate Term Loan Facility $ 244,063 14.13 % $ 257,813 10.75 % Less: Current portion of long-term debt 13,750 13,750 Less: Unamortized debt issuance costs 6,807 9,589 Long-term debt, net $ 223,506 $ 234,474 |
Schedule of Aggregate Scheduled Maturities | The Company’s aggregate scheduled maturities of the Term Loan Facility and ABL Facility as of January 27, 2023 are as follows: Scheduled maturities (in thousands) 2023 $ 13,750 2024 13,750 2025 316,563 2026 — 2027 — Total $ 344,063 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | : (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Operating lease expense $ 7,466 $ 8,273 $ 8,516 Variable lease expense 2,714 2,312 2,303 Ending balance $ 10,180 $ 10,585 $ 10,819 |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Operating lease right-of-use asset $ 30,325 $ 31,492 Lease liability – current 5,414 5,617 Lease liability – long-term 31,095 32,731 Weighted average remaining lease term in years 6.6 6.8 Weighted average discount rate 6.36 % 6.55 % |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Operating cash outflows from operating leases $ 9,154 $ 10,509 $ 8,710 Operating lease right-of-use-assets obtained in exchange for lease liabilities 4,440 1,409 3,406 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of January 27, 2023 are as follows: (in thousands) 2023 $ 7,516 2024 6,815 2025 6,400 2026 6,343 2027 6,377 Thereafter 11,850 Total operating lease payments $ 45,301 Less imputed interest 8,792 Present value of lease liabilities $ 36,509 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary 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 2022 Fiscal 2021 Fiscal 2020 Deferred Awards $ 5,744 $ 5,683 $ 5,752 Performance Awards (1) ( 2,090 ) 4,370 2,701 Option Awards 99 103 748 Total stock-based compensation expense $ 3,753 $ 10,156 $ 9,201 (1) Net credit expense for Fiscal 2022 includes a reduction of the accrual for Performance Awards based on actual and projected results relative to performance measures. |
Summary of Deferred Awards Activity | Deferred Awards The following table summarizes of the Deferred Awards activity for Fiscal 2022 and Fiscal 2021: Fiscal Year Ended January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Unvested Deferred Awards at beginning 913 $ 14.60 1,093 $ 10.86 Granted 503 18.09 247 29.90 Vested ( 398 ) 14.14 ( 401 ) 13.89 Forfeited ( 112 ) 16.94 ( 26 ) 13.46 Unvested Deferred Awards at end 906 $ 16.46 913 $ 14.60 |
Summary of Performance Awards Activity | Performance Awards The following table provides a summary of the Performance Awards activity for Fiscal 2022 and Fiscal 2021: Fiscal Year Ended January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Unvested Performance Awards at 436 $ 21.15 393 $ 18.32 Granted 248 20.65 166 29.95 Change in estimate - performance — — 42 15.73 Vested ( 270 ) 15.73 ( 165 ) 21.90 Forfeited ( 59 ) 24.39 — — Unvested Performance Awards at 355 $ 24.39 436 $ 21.15 |
Summary of Changes in Outstanding Options Awards | Options Awards The following table provides a summary of the changes in outstanding Options Awards for Fiscal 2022 . There was no Option Awards activity during Fiscal 2021: Fiscal Year Ended January 27, 2023 Option Awards Weighted (in thousands, except per share amounts) Option Awards outstanding at beginning of year 343 $ 18.66 Granted 168 10.81 Exercised — — Forfeited — — Option Awards outstanding at end of year 511 $ 16.08 |
Summary of Information about Option Awards Vested and Expected to Vest | The following table provides a summary of information about the Option Awards vested and expected to vest during the contractual term, as well as Option Awards exercisable as of January 27, 2023: Option Awards Weighted Weighted Aggregate Intrinsic Value (in thousands, except per share and contractual life amounts) Option Awards vested and expected to vest 511 6.0 $ 16.08 — Option Awards exercisable 343 4.1 $ 18.66 — |
Schedule of Grand Date Fair Value of Option Award Granted | The grant date fair value of the Option Award granted during Fiscal 2022 was estimated at the grant date using the Black Scholes option pricing model with the following assumptions: Risk-free interest rate (1) 4.2 % Expected dividend yield 0.0 % Expected volatility (2) 75.5 % Expected term (in years) (3) 6.0 Grant date fair value per share $ 7.44 (1) The Risk-free interest rate is based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected term of the stock option award. (2) The Expected volatility is estimated based on the historical volatility of the Company’s common stock with a term consistent with the expected term of the stock option award. (3) The Expected term (in years) of the stock option award represents the estimated period of time until exercise and is calculated using the simplified method. The simplified method was used to calculate the Expected term (in years) as the Company does not have sufficient historical experience exercise data to provide a reasonable basis upon which to estimate the expected term of the Option Award. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Share Repurchase Program | |
Equity Class of Treasury Stock [Line Items] | |
Summary of Share Repurchases | The following table summarizes the Company’s share repurchases through January 27, 2023: (Shares and $ in thousands except average per share cost) January 27, 2023 January 28, 2022 Number of shares repurchased 796 — Total cost $ 8,447 $ — Average per share cost $ 10.61 $ — The Company retired all |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in thousands) January 27, January 28, Deferred gift card revenue $ 33,029 $ 33,070 Reserve for sales returns and allowances 25,030 23,421 Accrued employee compensation and benefits 18,125 58,833 Deferred revenue 7,484 8,560 Accrued property, sales and other taxes 9,780 11,999 Accrued interest 4,456 2,366 Other 8,852 8,014 Total accrued expenses and other current liabilities $ 106,756 $ 146,263 |
Lands' End Japan Closure (Table
Lands' End Japan Closure (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of One-time Closing Costs of Lands' End Japan Recognized in Other Operating Expense | The following table summarizes the one-time closing costs of Lands’ End Japan recognized in Other operating expense, net in the Consolidated Statement of Operations for the 52 weeks ended January 27, 2023. (in thousands) January 27, 2023 Employee severance and benefit costs (1) $ 1,795 Early termination and restoration costs of leased facilities 744 Contract cancellation and other costs 448 Total one-time closing costs $ 2,987 (1) Employee severance and benefit costs are approximately $ 1.0 million lower than actual payments due to the reversal of a previously recorded compensation-related accrual. |
Summary of Accrued Closing Cost Activity Related to Lands' End Japan Included in Accrued Expenses and Other Current Liabilities in Consolidated Balance Sheets | The following table summarizes the accrued closing cost activity related to Lands’ End Japan included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets: (in thousands) Employee Severance and Benefit Costs Leased Facilities Costs Other Closing Costs Total Balance as of July 29, 2022 $ — $ — $ — $ — Estimated costs payable in cash 2,812 749 347 3,908 Cash payments ( 2,076 ) ( 381 ) ( 379 ) ( 2,836 ) Foreign currency translation 331 104 49 484 Balance as of January 27, 2023 $ 1,067 $ 472 $ 17 $ 1,556 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | Carrying values and fair values of other financial instruments in the Consolidated Balance Sheets are as follows: January 27, 2023 January 28, 2022 (in thousands) Carrying Fair Carrying Fair Long-term debt, including current portion $ 244,063 $ 241,728 $ 257,813 $ 256,439 |
Goodwill and Indefinite Lived_2
Goodwill and Indefinite Lived Intangible Assets (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Indefinite Lived Intangible Assets and Goodwill | The following table summarizes the Company’s goodwill and indefinite-lived intangible asset: (in thousands) January 27, 2023 January 28, 2022 Goodwill balance $ 106,700 $ 106,700 Trade name balance $ 257,000 $ 257,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
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 2022 Fiscal 2021 Fiscal 2020 Income (loss) before income taxes United States $ 4,646 $ 52,963 $ 173 Foreign ( 19,325 ) ( 6,994 ) 12,419 Total (loss) income before income taxes $ ( 14,679 ) $ 45,969 $ 12,592 |
Schedule of Components of the Provision for (Benefit from) Income Taxes | The components of the provision for (benefit from) income taxes are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 United States $ ( 3,258 ) $ 12,215 $ 725 Foreign 1,109 385 1,031 Total (benefit) provision $ ( 2,149 ) $ 12,600 $ 1,756 (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 Current: Federal $ ( 3,928 ) $ 11,370 $ 8,334 State ( 273 ) 1,627 3,675 Foreign 1,125 385 517 Total current ( 3,076 ) 13,382 12,526 Deferred: Federal 682 ( 1,426 ) ( 8,413 ) State 261 644 ( 2,871 ) Foreign ( 16 ) — 514 Total deferred 927 ( 782 ) ( 10,770 ) Total (benefit) provision $ ( 2,149 ) $ 12,600 $ 1,756 |
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 2022 Fiscal 2021 Fiscal 2020 Tax at statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 0.1 % 3.9 % 5.0 % Foreign differential 27.2 % ( 5.2 )% 2.7 % Permanent differences ( 3.4 )% 1.9 % 16.8 % CARES Act — % — % ( 24.6 )% Uncertain tax benefits 1.1 % 1.1 % ( 1.6 )% Change in foreign valuation allowance ( 32.4 )% 4.9 % ( 3.8 )% Foreign branches — % — % — % Other, net 1.0 % ( 0.2 )% ( 1.6 )% Total 14.6 % 27.4 % 13.9 % |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: (in thousands) January 27, January 28, January 29, Deferred tax assets Deferred revenue $ 5,946 $ 6,528 $ 4,882 Legal accruals 2,053 2,461 3,551 Deferred compensation 10,246 18,328 16,147 Deferred interest 10,011 — — Reserve for returns 2,938 2,958 3,072 Inventory 4,303 3,730 6,390 CTA investment in foreign subsidiaries 4,525 3,361 2,987 Operating lease liabilities 8,112 8,677 9,677 Other 1,980 2,402 2,668 Net operating loss carryforward 11,057 5,211 3,093 Total deferred tax assets 61,171 53,656 52,467 Less valuation allowance ( 11,207 ) ( 6,009 ) ( 3,896 ) Net deferred tax assets $ 49,964 $ 47,647 $ 48,571 Deferred tax liabilities Intangible assets $ 61,715 $ 62,295 $ 62,372 LIFO reserve 21,263 18,118 15,191 Property and equipment 4,461 4,396 8,660 Operating lease right-of-use assets 6,670 7,089 7,882 Catalog advertising 1,808 1,940 1,812 Total deferred tax liabilities 95,917 93,838 95,917 Net deferred tax liability $ 45,953 $ 46,191 $ 47,346 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (“UTBs”) is as follows: Fiscal 2022 Fiscal 2021 Fiscal 2020 Gross UTBs balance at beginning of period $ 1,477 $ 1,012 $ 1,202 Tax positions related to the prior periods - gross ( 180 ) 539 ( 190 ) Settlements — ( 74 ) — Gross UTBs balance at end of period $ 1,297 $ 1,477 $ 1,012 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 27, 2023 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Distribution Channel | Net revenue is presented by distribution channel in the following table: (in thousands) Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue Fiscal 2020 % of Net Revenue U.S. eCommerce $ 955,752 61.4 % $ 1,027,138 62.8 % $ 961,911 67.4 % International 166,627 10.7 % 220,997 13.5 % 222,878 15.6 % Outfitters 265,898 17.1 % 254,191 15.5 % 174,260 12.2 % Third Party 118,996 7.7 % 86,517 5.3 % 39,945 2.8 % Retail 48,156 3.1 % 47,781 2.9 % 28,454 2.0 % Total Net revenue $ 1,555,429 $ 1,636,624 $ 1,427,448 |
Summary of Segment and Geographic Region | The geographical allocation of Net revenue is based upon where the product is shipped. The following presents summarized geographical information: (in thousands) Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue Fiscal 2020 % of Net Revenue United States $ 1,368,518 88.0 % $ 1,393,402 85.1 % $ 1,191,346 83.4 % Europe 135,878 8.7 % 179,302 11.0 % 175,011 12.3 % Asia 33,451 2.2 % 44,383 2.7 % 49,725 3.5 % Other 17,582 1.1 % 19,537 1.2 % 11,366 0.8 % Total Net revenue $ 1,555,429 $ 1,636,624 $ 1,427,448 |
Summary of Property and Equipment Net by Geographical Location | Property and equipment, net by geographical location are as follows: (in thousands) Fiscal 2022 Fiscal 2021 Fiscal 2020 United States $ 120,311 $ 121,259 $ 136,038 Europe 7,051 7,879 8,267 Asia 276 653 983 Total long-lived assets $ 127,638 $ 129,791 $ 145,288 |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 29, 2022 | Jul. 31, 2020 | Jan. 27, 2023 | ||
Unusual Risk Or Uncertainty [Line Items] | ||||
Corporate restructuring, percentage of reduced corporate positions | 10% | |||
Severance costs | [1] | $ 1,795 | ||
Other Operating Expense (Income) | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
One-time closing costs | $ 3,000 | |||
Severance costs | $ 2,900 | |||
[1] Employee severance and benefit costs are approximately $ 1.0 million lower than actual payments due to the reversal of a previously recorded compensation-related accrual. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 625 | $ 680 |
Provision | 295 | 158 |
Write-offs | (192) | (213) |
Ending balance | $ 728 | $ 625 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 | Jul. 29, 2021 | May 01, 2020 | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Significant Accounting Policies [Line Items] | ||||||
Increase in inventories | $ 45,873,000 | $ 4,213,000 | $ 4,081,000 | |||
Reserve for excess and obsolete inventory | 13,900,000 | 15,200,000 | ||||
Unamortized marketing costs | 10,400,000 | 10,800,000 | ||||
Marketing expenses | 205,600,000 | 220,000,000 | 195,400,000 | |||
Depreciation expense | $ 38,700,000 | 39,200,000 | 37,300,000 | |||
Lease, Existence of Option to Extend [true false] | true | |||||
Lease option to extend | The lease term is defined as the noncancelable portion of the lease term plus any periods covered by an option to extend the lease, if it is reasonably certain that the option will be exercised. | |||||
Impairment of property and equipment | $ 500,000 | 0 | 400,000 | |||
Goodwill | 106,700,000 | 106,700,000 | ||||
Goodwill impairment | 3,300,000 | |||||
Accounts receivable, net | 44,928,000 | 49,668,000 | ||||
Foreign currency translation adjustments | (4,380,000) | (1,421,000) | 1,767,000 | |||
Gift card breakage | (1,281,000) | (4,444,000) | ||||
Total self insurance expenses | 17,700,000 | 17,300,000 | 17,100,000 | |||
401(k) plan expense | $ 3,900,000 | $ 3,900,000 | $ 700,000 | |||
Options awards expiration period | 10 years | |||||
Antidilutive shares excluded from diluted weighted average shares outstanding | 1,186,739 | 93 | 1,093,274 | |||
Accrued Expenses and Other Current Liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Refund liabilities | $ 25,000,000 | $ 23,400,000 | ||||
Cost Of Sales | ||||||
Significant Accounting Policies [Line Items] | ||||||
Foreign currency translation adjustments | 4,400,000 | 1,400,000 | ||||
Foreign exchange transaction adjustments | $ (1,000,000) | 800,000 | $ (3,400,000) | |||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Leases remaining terms | 1 year | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Leases remaining terms | 10 years | |||||
ABL Facility | ||||||
Significant Accounting Policies [Line Items] | ||||||
Maximum borrowing availability under ABL Facility | $ 275,000,000 | |||||
Line of credit facility, maturity date | Nov. 16, 2022 | |||||
Line of credit | 100,000,000 | 0 | ||||
Letter of credit outstanding amount | 10,557,000 | $ 23,521,000 | ||||
ABL Facility | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Line of credit facility, maturity date | Jun. 09, 2025 | Jun. 09, 2025 | ||||
ABL Facility | Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Line of credit facility, maturity date | Jul. 29, 2026 | Jul. 29, 2026 | ||||
ABL Facility | Letter of Credit | ||||||
Significant Accounting Policies [Line Items] | ||||||
Maximum borrowing availability under ABL Facility | $ 70,000,000 | |||||
Trade Names | ||||||
Significant Accounting Policies [Line Items] | ||||||
Reporting units exceeded the carrying value percentage | 13.30% | 68.90% | 61.20% | |||
Impairment of indefinite intangible asset excluding goodwill | $ 0 | $ 0 | $ 0 | |||
US eCommerce | ||||||
Significant Accounting Policies [Line Items] | ||||||
Reporting units exceeded the carrying value percentage | 13.20% | 91.20% | ||||
Goodwill | $ 70,400,000 | |||||
Outfitters | ||||||
Significant Accounting Policies [Line Items] | ||||||
Reporting units exceeded the carrying value percentage | 26.70% | 65.50% | ||||
Goodwill | $ 36,300,000 | |||||
COVID-19 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |||
COVID-19 | Japan eCommerce | ||||||
Significant Accounting Policies [Line Items] | ||||||
Goodwill impairment | $ 3,300,000 | |||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | |||||
United States | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of LIFO inventory | 92% | 86% | ||||
LIFO | ||||||
Significant Accounting Policies [Line Items] | ||||||
Increase in inventories | $ 1,200,000 | $ 800,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 435,772 | $ 407,118 | |
Less: Accumulated depreciation | (308,134) | (277,327) | |
Total property and equipment, net | 127,638 | 129,791 | $ 145,288 |
Land | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | 3,440 | 3,468 | |
Buildings and improvements | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 99,545 | 102,077 | |
Buildings and improvements | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 15 years | ||
Buildings and improvements | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 30 years | ||
Furniture, fixtures and equipment | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 59,992 | 61,751 | |
Furniture, fixtures and equipment | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 10 years | ||
Computer hardware and software | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 232,799 | 211,726 | |
Computer hardware and software | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 3 years | ||
Computer hardware and software | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 10 years | ||
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 12,761 | 12,818 | |
Leasehold improvements | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 3 years | ||
Leasehold improvements | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Asset lives of property and equipment (years) | 7 years | ||
Construction in progress | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 27,235 | $ 15,278 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Deferred Revenue Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred revenue beginning of period | $ 8,560 | $ 17,187 |
Deferred revenue recognized in period | (8,346) | (16,973) |
Revenue deferred in period | 7,270 | 8,346 |
Deferred revenue end of period | $ 7,484 | $ 8,560 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Gift Card Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Gift Card Reconciliation [Abstract] | ||
Gift card liability at beginning of period | $ 33,070 | $ 26,798 |
Gift cards sold | 65,877 | 55,107 |
Gift cards redeemed | (64,637) | (44,391) |
Gift card breakage | (1,281) | (4,444) |
Balance as of end of period | $ 33,029 | $ 33,070 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Accounting Policies [Abstract] | |||
Beginning balance: Accumulated other comprehensive loss (net of tax of $3,361, $2,987, and $3,453, respectively) | $ (12,642) | $ (11,221) | $ (12,988) |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments | (4,380) | (1,421) | 1,767 |
Ending balance: Accumulated other comprehensive loss (net of tax of $4,525, $3,361, and $2,987, respectively) | $ (17,022) | $ (12,642) | $ (11,221) |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | ||||
Accumulated other comprehensive loss, tax | $ 4,525 | $ 3,361 | $ 2,987 | $ 3,453 |
Foreign currency translations adjustment, tax | $ 1,164 | $ 374 | $ (466) |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Accounting Policies [Abstract] | |||
Net income (loss) | $ (12,530) | $ 33,369 | $ 10,836 |
Basic weighted average shares outstanding | 33,108 | 32,929 | 32,566 |
Dilutive impact of stock awards | 0 | 752 | 86 |
Diluted weighted average shares outstanding | 33,108 | 33,681 | 32,652 |
Basic (loss) earnings per share | $ (0.38) | $ 1.01 | $ 0.33 |
Diluted (loss) earnings per share | $ (0.38) | $ 0.99 | $ 0.33 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | |||||
Jul. 31, 2021 | Jul. 30, 2021 | Jul. 29, 2021 | Sep. 09, 2020 USD ($) | Jan. 27, 2023 USD ($) | Jan. 28, 2022 USD ($) | |
ABL Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Maximum borrowing availability under ABL Facility | $ 275,000,000 | |||||
Line of credit facility, available to borrow of facility limit | 275,000,000 | $ 275,000,000 | ||||
Line of credit | 100,000,000 | 0 | ||||
Letter of credit outstanding amount | 10,557,000 | 23,521,000 | ||||
Borrowing base under facility | 164,443,000 | 251,479,000 | ||||
Line of credit facility, maturity date | Nov. 16, 2022 | |||||
ABL Facility | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit facility, maturity date | Jun. 09, 2025 | Jun. 09, 2025 | ||||
ABL Facility | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit facility, maturity date | Jul. 29, 2026 | Jul. 29, 2026 | ||||
ABL Facility | Base Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Borrowing base under facility | 163,800,000 | |||||
ABL Facility | Letter of Credit | ||||||
Line Of Credit Facility [Line Items] | ||||||
Maximum borrowing availability under ABL Facility | 70,000,000 | |||||
ABL Facility | Secured Debt | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit | $ 100,000,000 | |||||
Line of credit facility, commencement date | Jul. 31, 2021 | |||||
Line of credit facility, unused commitment fee percentage | 0.25% | |||||
Line of credit facility, covenant terms, minimum percentage of loan cap amount | 10% | |||||
Line of credit facility, covenant terms, minimum excess credit availability | $ 15,000,000 | |||||
Line of credit facility, covenant terms, minimum fixed charge coverage ratio | 1 | |||||
ABL Facility | Secured Debt | LIBOR | ||||||
Line Of Credit Facility [Line Items] | ||||||
Variable rate spread on outstanding loans less than $95 million | 1.25% | |||||
Variable rate spread on outstanding loans equal to or greater than $95 million but less than $180 million | 1.50% | |||||
Variable rate spread on outstanding loans greater than or equal to $180 million | 1.75% | |||||
Spread on variable rate | 0% | 0.75% | ||||
ABL Facility | Secured Debt | Base Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Variable rate spread on outstanding loans less than $95 million | 0.50% | |||||
Variable rate spread on outstanding loans equal to or greater than $95 million but less than $180 million | 0.75% | |||||
Variable rate spread on outstanding loans greater than or equal to $180 million | 1% | |||||
Term Loan Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Secured debt | $ 275,000,000 | $ 244,063,000 | $ 257,813,000 | |||
Debt origination fees | $ 5,100,000 | |||||
Percentage of original issue discount | 3% | |||||
Percentage of prepayment premium to voluntary prepayments and mandatory prepayments | 3% | |||||
Prepayments premium 3% payment start date | Sep. 09, 2022 | |||||
Prepayments premium 3% payment end date | Sep. 09, 2023 | |||||
Percentage of prepayments made | 1% | |||||
Prepayments 1% premium payment start date | Sep. 09, 2023 | |||||
Prepayments 1% premium payment end date | Sep. 09, 2024 | |||||
Term Loan Facility | Fortress Credit Corp | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit facility, amortization rate | 1.25% | |||||
Term Loan Facility | Secured Debt | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Federal funds rate | 0% | |||||
Term Loan Facility | Secured Debt | Minimum | Fortress Credit Corp | ||||||
Line Of Credit Facility [Line Items] | ||||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 0% | |||||
Term Loan Facility | Secured Debt | Maximum | Fortress Credit Corp | ||||||
Line Of Credit Facility [Line Items] | ||||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 75% | |||||
Term Loan Facility | Secured Debt | Adjusted LIBOR | ||||||
Line Of Credit Facility [Line Items] | ||||||
Spread on variable rate | 9.75% | |||||
Minimum LIBOR rate | 1% | |||||
Term Loan Facility | Secured Debt | Alternate Base Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Spread on variable rate | 8.75% | |||||
Term Loan Facility | Secured Debt | Federal Funds Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Spread on variable rate | 0.50% | 0.50% | ||||
Term Loan Facility | Secured Debt | One Month LIBOR | ||||||
Line Of Credit Facility [Line Items] | ||||||
Spread on variable rate | 1% | 1% |
Debt - Summary of Company's Max
Debt - Summary of Company's Maximum Borrowing Availability Under ABL Facility (Details) - ABL Facility - USD ($) | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Line Of Credit Facility [Line Items] | ||
ABL Facility limit | $ 275,000,000 | $ 275,000,000 |
Less: Outstanding borrowings | 100,000,000 | 0 |
Less: Outstanding letters of credit | 10,557,000 | 23,521,000 |
Maximum borrowing availability under ABL Facility | $ 164,443,000 | $ 251,479,000 |
Interest Rate | 6.27% |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long Term Debt (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 | Sep. 09, 2020 |
Line Of Credit Facility [Line Items] | |||
Less: Current portion of long-term debt | $ 13,750 | $ 13,750 | |
Less: Unamortized debt issuance costs | 6,807 | 9,589 | |
Long-term debt, net | 223,506 | 234,474 | |
Term Loan Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured debt | $ 244,063 | $ 257,813 | $ 275,000 |
Debt instrument, interest rate, stated percentage | 14.13% | 10.75% |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities (Details) - Term Loan Facility and ABL Facility - Secured Debt $ in Thousands | Jan. 27, 2023 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 13,750 |
2024 | 13,750 |
2025 | 316,563 |
Long Term Debt | $ 344,063 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 7,466 | $ 8,273 | $ 8,516 |
Variable lease expense | 2,714 | 2,312 | 2,303 |
Ending balance | $ 10,180 | $ 10,585 | $ 10,819 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 30,325 | $ 31,492 |
Lease liability - current | 5,414 | 5,617 |
Lease liability - long-term | $ 31,095 | $ 32,731 |
Weighted average remaining lease term in years | 6 years 7 months 6 days | 6 years 9 months 18 days |
Weighted average discount rate | 6.36% | 6.55% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Leases [Abstract] | |||
Operating cash outflows from operating leases | $ 9,154 | $ 10,509 | $ 8,710 |
Operating lease right-of-use-assets obtained in exchange for lease liabilities | $ 4,440 | $ 1,409 | $ 3,406 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jan. 27, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 7,516 |
2024 | 6,815 |
2025 | 6,400 |
2026 | 6,343 |
2027 | 6,377 |
Thereafter | 11,850 |
Total operating lease payments | 45,301 |
Less imputed interest | 8,792 |
Present value of lease liabilities | $ 36,509 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target shares earned | 100% | |
Options awards expiration period | 10 years | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target shares earned | 50% | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target shares earned | 200% | |
Deferred Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Compensation expense not yet recognized | $ 8,100,000 | |
Compensation expense not yet recognized, recognition period | 1 year 10 months 24 days | |
Fair value of awards, vested | $ 5,600,000 | |
Performance Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Compensation expense not yet recognized | $ 0 | |
Performance awards period considered | 3 years | 3 years |
Fair value of awards, vested | $ 4,200,000 | |
Option Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options awards expiration period | 10 years | |
Compensation expense not yet recognized, recognition period | 2 years 9 months 18 days | |
Compensation expense not yet recognized | $ 1,200,000 | |
Options award activity | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 3,753 | $ 10,156 | $ 9,201 |
Deferred Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | 5,744 | 5,683 | 5,752 |
Performance Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | (2,090) | 4,370 | 2,701 |
Option Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 99 | $ 103 | $ 748 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Deferred Awards Activity (Details) - Deferred Awards - $ / shares shares in Thousands | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Unvested awards at beginning of year | 913 | 1,093 |
Number of Shares, Granted | 503 | 247 |
Number of Shares, Vested | (398) | (401) |
Number of Shares, Forfeited | (112) | (26) |
Number of Shares, Unvested awards at end of year | 906 | 913 |
Weighted Average Grant Date Fair Value, Unvested awards at beginning of year | $ 14.60 | $ 10.86 |
Weighted Average Grant Date Fair Value, Granted | 18.09 | 29.90 |
Weighted Average Grant Date Fair Value, Vested | 14.14 | 13.89 |
Weighted Average Grant Date Fair Value, Forfeited | 16.94 | 13.46 |
Weighted Average Grant Date Fair Value, Unvested awards at end of year | $ 16.46 | $ 14.60 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Awards Activity (Details) - Performance Awards - $ / shares | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Unvested awards at beginning of year | 436,000 | 393,000 |
Number of Shares, Granted | 248,000 | 166,000 |
Number of Shares, Change in estimate - performance | 42,000 | |
Number of Shares, Vested | (270,000) | (165,000) |
Number of Shares, Forfeited | (59,000) | |
Number of Shares, Unvested awards at end of year | 355,000 | 436,000 |
Weighted Average Grant Date Fair Value, Unvested awards at beginning of year | $ 21.15 | $ 18.32 |
Weighted Average Grant Date Fair Value, Granted | 20.65 | 29.95 |
Weighted Average Grant Date Fair Value, Change in estimate - performance | 15.73 | |
Weighted Average Grant Date Fair Value, Vested | 15.73 | 21.90 |
Weighted Average Grant Date Fair Value, Forfeited | 24.39 | |
Weighted Average Grant Date Fair Value, Unvested awards at end of year | $ 24.39 | $ 21.15 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Changes in Outstanding Options Awards (Details) - Option Awards | 12 Months Ended |
Jan. 27, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Option Awards, Outstanding at beginning of year | shares | 343,000 |
Option Awards, Granted | shares | 168,000 |
Option Awards, Outstanding at end of year | shares | 511,000 |
Weighted Average Exercise Price per Share, Outstanding at beginning of year | $ / shares | $ 18.66 |
Weighted Average Exercise Price per Share, Granted | $ / shares | 10.81 |
Weighted Average Exercise Price per Share, Outstanding at end of year | $ / shares | $ 16.08 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Information about Option Awards Vested and Expected to Vest (Details) - Option Awards | 12 Months Ended |
Jan. 27, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Option Awards, Option Awards vested and expected to vest | shares | 511,000 |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest | 6 years |
Weighted Average Exercise Price, Option Awards vested and expected to vest | $ / shares | $ 16.08 |
Option Awards, Option Awards exercisable | shares | 343,000 |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest, Option Awards exercisable | 4 years 1 month 6 days |
Weighted Average Exercise Price, Option Awards exercisable | $ / shares | $ 18.66 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Grand Date Fair Value of Option Award Granted (Details) | 12 Months Ended |
Jan. 27, 2023 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Risk-free interest rate | 4.20% |
Expected dividend yield | 0% |
Expected volatility | 75.50% |
Expected term (in years) | 6 years |
Grant date fair value per share | $ 7.44 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2022 | Jan. 27, 2023 | Jan. 28, 2022 | |
Equity Class of Treasury Stock [Line Items] | |||
Purchases and retirement of common stock | $ (8,463,000) | ||
Share Repurchase Program | |||
Equity Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 50,000,000 | ||
Stock repurchase program expiration date | Feb. 02, 2024 | ||
Stock repurchase program, additional purchases could be made | 41,600,000 | ||
Purchases and retirement of common stock | 8,447,000 | ||
Retained Earnings | |||
Equity Class of Treasury Stock [Line Items] | |||
Purchases and retirement of common stock | (798,000) | ||
Retained Earnings | Share Repurchase Program | |||
Equity Class of Treasury Stock [Line Items] | |||
Purchases and retirement of common stock | $ 7,700,000 |
Stockholder' Equity - Summary o
Stockholder' Equity - Summary of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 27, 2023 | Jan. 28, 2022 | |
Equity Class of Treasury Stock [Line Items] | ||
Total cost | $ (8,463) | |
Share Repurchase Program | ||
Equity Class of Treasury Stock [Line Items] | ||
Number of shares repurchased | 796 | |
Total cost | $ 8,447 | |
Average per share cost | $ 10.61 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 |
Other Liabilities, Current [Abstract] | |||
Deferred gift card revenue | $ 33,029 | $ 33,070 | $ 26,798 |
Reserve for sales returns and allowances | 25,030 | 23,421 | |
Accrued employee compensation and benefits | 18,125 | 58,833 | |
Deferred revenue | 7,484 | 8,560 | |
Accrued property, sales and other taxes | 9,780 | 11,999 | |
Accrued interest | 4,456 | 2,366 | |
Other | 8,852 | 8,014 | |
Total accrued expenses and other current liabilities | $ 106,756 | $ 146,263 |
Lands' End Japan Closure - Summ
Lands' End Japan Closure - Summary of One-time Closing Costs of Lands' End Japan Recognized in Other Operating Expense (Details) $ in Thousands | 12 Months Ended | |
Jan. 27, 2023 USD ($) | ||
Restructuring and Related Activities [Abstract] | ||
Employee severance and benefit costs | $ 1,795 | [1] |
Early termination and restoration costs of leased facilities | 744 | |
Contract cancellation and other costs | 448 | |
Total one-time closing costs | $ 2,987 | |
[1] Employee severance and benefit costs are approximately $ 1.0 million lower than actual payments due to the reversal of a previously recorded compensation-related accrual. |
Lands' End Japan Closure - Su_2
Lands' End Japan Closure - Summary of Estimated Closure Costs of Lands' End Japan Recognized in Other Operating Expense (Parenthetical) (Details) $ in Thousands | 12 Months Ended | |
Jan. 27, 2023 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and benefit costs | $ 1,795 | [1] |
Compensation-Related Accrual | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and benefit costs | $ 1,000 | |
[1] Employee severance and benefit costs are approximately $ 1.0 million lower than actual payments due to the reversal of a previously recorded compensation-related accrual. |
Lands' End Japan Closure - Su_3
Lands' End Japan Closure - Summary of Accrued Closure Cost Activity Related to Lands' End Japan Included in Accrued Expenses and Other Current Liabilities in Consolidated Balance Sheets (Details) $ in Thousands | 6 Months Ended |
Jan. 27, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs (reductions) payable in cash | $ 3,908 |
Cash payments | (2,836) |
Foreign currency translation | 484 |
Ending Balance | 1,556 |
Employee Severance and Benefit Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs (reductions) payable in cash | 2,812 |
Cash payments | (2,076) |
Foreign currency translation | 331 |
Ending Balance | 1,067 |
Leased Facilities Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs (reductions) payable in cash | 749 |
Cash payments | (381) |
Foreign currency translation | 104 |
Ending Balance | 472 |
Other Closing Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Estimated costs (reductions) payable in cash | 347 |
Cash payments | (379) |
Foreign currency translation | 49 |
Ending Balance | $ 17 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Additional Information (Details) - USD ($) | Jan. 27, 2023 | Jan. 28, 2022 |
Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Nonfinancial assets fair value disclosure | $ 0 | $ 0 |
Nonfinancial liabilities fair value disclosure | 0 | 0 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash fair value | $ 1,800,000 | $ 1,800,000 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Carrying Values and Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 244,063 | $ 257,813 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 241,728 | $ 256,439 |
Goodwill and Indefinite Lived_3
Goodwill and Indefinite Lived Intangible Assets - Summary of Goodwill and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 106,700 | $ 106,700 |
Trade name balance | $ 257,000 | $ 257,000 |
Goodwill and Indefinite Lived_4
Goodwill and Indefinite Lived Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
May 01, 2020 | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Goodwill impairment | $ 3,300,000 | |||
Goodwill | $ 106,700,000 | $ 106,700,000 | ||
Trade Names | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Impairment of indefinite intangible asset excluding goodwill | 0 | 0 | 0 | |
COVID-19 | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Goodwill impairment | 0 | $ 0 | $ 0 | |
Outfitters | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Goodwill | 36,300,000 | |||
Japan eCommerce | COVID-19 | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Goodwill impairment | $ 3,300,000 | |||
US eCommerce | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Goodwill | $ 70,400,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Income (loss) before income taxes | |||
United States | $ 4,646 | $ 52,963 | $ 173 |
Foreign | (19,325) | (6,994) | 12,419 |
(Loss) income before income taxes | $ (14,679) | $ 45,969 | $ 12,592 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of the Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Income Tax Expense (Benefit), Continuing Operations, by Jurisdiction [Abstract] | |||
United States | $ (3,258) | $ 12,215 | $ 725 |
Foreign | 1,109 | 385 | 1,031 |
Total (benefit) provision | (2,149) | 12,600 | 1,756 |
Current: | |||
Federal | (3,928) | 11,370 | 8,334 |
State | (273) | 1,627 | 3,675 |
Foreign | 1,125 | 385 | 517 |
Total current | (3,076) | 13,382 | 12,526 |
Deferred: | |||
Federal | 682 | (1,426) | (8,413) |
State | 261 | 644 | (2,871) |
Foreign | (16) | 0 | 514 |
Total deferred | 927 | (782) | (10,770) |
Total (benefit) provision | $ (2,149) | $ 12,600 | $ 1,756 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 0.10% | 3.90% | 5% |
Foreign differential | 27.20% | (5.20%) | 2.70% |
Permanent differences | (3.40%) | 1.90% | 16.80% |
CARES Act | 0% | (24.60%) | |
Uncertain tax benefits | 1.10% | 1.10% | (1.60%) |
Change in foreign valuation allowance | (32.40%) | 4.90% | (3.80%) |
Foreign branches | 0% | 0% | |
Other, net | 1% | (0.20%) | (1.60%) |
Total | 14.60% | 27.40% | 13.90% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 |
Deferred tax assets | |||
Deferred revenue | $ 5,946 | $ 6,528 | $ 4,882 |
Legal accruals | 2,053 | 2,461 | 3,551 |
Deferred compensation | 10,246 | 18,328 | 16,147 |
Deferred interest | 10,011 | 0 | 0 |
Reserve for returns | 2,938 | 2,958 | 3,072 |
Inventory | 4,303 | 3,730 | 6,390 |
CTA investment in foreign subsidiaries | 4,525 | 3,361 | 2,987 |
Operating lease liabilities | 8,112 | 8,677 | 9,677 |
Other | 1,980 | 2,402 | 2,668 |
Net operating loss carryforward | 11,057 | 5,211 | 3,093 |
Total deferred tax assets | 61,171 | 53,656 | 52,467 |
Less valuation allowance | (11,207) | (6,009) | (3,896) |
Net deferred tax assets | 49,964 | 47,647 | 48,571 |
Deferred tax liabilities | |||
Intangible assets | 61,715 | 62,295 | 62,372 |
LIFO reserve | 21,263 | 18,118 | 15,191 |
Property and equipment | 4,461 | 4,396 | 8,660 |
Operating lease right-of-use assets | 6,670 | 7,089 | 7,882 |
Catalog advertising | 1,808 | 1,940 | 1,812 |
Total deferred tax liabilities | 95,917 | 93,838 | 95,917 |
Net deferred tax liability | $ 45,953 | $ 46,191 | $ 47,346 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 27, 2023 | Jan. 29, 2021 | Jan. 28, 2022 | Jan. 31, 2020 | |
Income Tax Examination [Line Items] | ||||
Unrecognized tax benefits | $ 1,297 | $ 1,012 | $ 1,477 | $ 1,202 |
Unrecognized tax benefits that would impact effective tax rate | $ 1,200 | |||
Tax years remain open for examination | 2018 2019 2020 2021 2022 | |||
Amount of interest and penalties recognized | $ 600 | 600 | ||
Income tax examination, penalties and interest accrued, net of tax benefit | 500 | $ 500 | ||
CARES act related to carryback of net operating losses | $ 3,100 | |||
State and Local Jurisdiction | ||||
Income Tax Examination [Line Items] | ||||
Operating loss Carryforwards | 37,200 | |||
Deferred tax assets, net | 1,800 | |||
Foreign Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Operating loss Carryforwards | 31,800 | |||
Deferred tax assets, net | $ 9,300 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Gross UTBs balance at beginning of period | $ 1,477 | $ 1,012 | $ 1,202 |
Tax positions related to the prior periods - gross (decreases) increases | (180) | 539 | (190) |
Settlements | (74) | 0 | |
Gross UTBs balance at end of period | $ 1,297 | $ 1,477 | $ 1,012 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 01, 2022 USD ($) Plaintiff | Jan. 27, 2023 USD ($) Lawsuit | Aug. 18, 2021 Plaintiff | Mar. 04, 2020 Plaintiff | Dec. 31, 2019 Plaintiff | |
Loss Contingencies [Line Items] | |||||
Number of lawsuits | Lawsuit | 3 | ||||
Number of plaintiffs | Plaintiff | 603 | 1,089 | 521 | ||
Number of plaintiffs remaining in case | Plaintiff | 277 | ||||
Claims on damages | $ | $ 110,000 | ||||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Damages sustained by proposed members | $ | $ 5,000,000 |
Related Party Agreements and _2
Related Party Agreements and Transactions - Additional Information (Details) - Sears Holdings Corporation - USD ($) | 12 Months Ended | |||
Apr. 04, 2014 | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Related Party Transaction [Line Items] | ||||
Distributed outstanding common stock percentage | 100% | |||
Sourcing | ||||
Related Party Transaction [Line Items] | ||||
Contract services expiration date | Jun. 30, 2020 | |||
Related party expenses | $ 0 | $ 0 | $ 2,200,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Jan. 27, 2023 Channel Country Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of distribution channels for revenue reporting purposes | Channel | 5 |
Number of countries other than the U.S. representing greater than 10% of total net revenue | 0 |
Number of countries other than the U.S. representing greater than 10% of total property and equipment, net | 0 |
Segment Reporting - Summary of
Segment Reporting - Summary of Net Revenue by Distribution Channel (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 1,555,429 | $ 1,636,624 | $ 1,427,448 |
US eCommerce | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 955,752 | $ 1,027,138 | $ 961,911 |
Percentage of net revenue | 61.40% | 62.80% | 67.40% |
International | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 166,627 | $ 220,997 | $ 222,878 |
Percentage of net revenue | 10.70% | 13.50% | 15.60% |
Outfitters | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 265,898 | $ 254,191 | $ 174,260 |
Percentage of net revenue | 17.10% | 15.50% | 12.20% |
Third Party | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 118,996 | $ 86,517 | $ 39,945 |
Percentage of net revenue | 7.70% | 5.30% | 2.80% |
Retail | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 48,156 | $ 47,781 | $ 28,454 |
Percentage of net revenue | 3.10% | 2.90% | 2% |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Segment and Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 1,555,429 | $ 1,636,624 | $ 1,427,448 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 1,368,518 | $ 1,393,402 | $ 1,191,346 |
Percentage of net revenue | 88% | 85.10% | 83.40% |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 135,878 | $ 179,302 | $ 175,011 |
Percentage of net revenue | 8.70% | 11% | 12.30% |
Asia | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 33,451 | $ 44,383 | $ 49,725 |
Percentage of net revenue | 2.20% | 2.70% | 3.50% |
Other Foreign | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 17,582 | $ 19,537 | $ 11,366 |
Percentage of net revenue | 1.10% | 1.20% | 0.80% |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Property and Equipment Net by Geographical Location (Details) - USD ($) $ in Thousands | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 127,638 | $ 129,791 | $ 145,288 |
United States | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 120,311 | 121,259 | 136,038 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 7,051 | 7,879 | 8,267 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 276 | $ 653 | $ 983 |