Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2024 | Apr. 01, 2024 | Jul. 28, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | Lands’ End, Inc. | ||
Document Type | 10-K | ||
Trading Symbol | LE | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Common Stock, Shares Outstanding | 31,491,974 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000799288 | ||
Entity Filer Category | Accelerated Filer | ||
Document Period End Date | Feb. 02, 2024 | ||
Document Fiscal Year Focus | 2023 | ||
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 | $ 136.8 | ||
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 $0.01 per share | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Auditor Name | BDO USA, P.C. | ||
Auditor Location | Madison, WI, United States | ||
Auditor Firm ID | 243 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to the registrant’s 2024 Annual Meeting of Stockholders (the “Proxy Statement”), to be held on May 9, 2024, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Income Statement [Abstract] | |||
Net revenue | $ 1,472,508 | $ 1,555,429 | $ 1,636,624 |
Cost of sales (excluding depreciation and amortization) | 846,981 | 961,663 | 945,164 |
Gross profit | 625,527 | 593,766 | 691,460 |
Selling and administrative | 550,211 | 527,374 | 571,767 |
Depreciation and amortization | 38,465 | 38,741 | 39,166 |
Goodwill impairment | 106,700 | ||
Other operating expense, net | 7,666 | 2,926 | 741 |
Total costs and expenses | 703,042 | 569,041 | 611,674 |
Operating (loss) income | (77,515) | 24,725 | 79,786 |
Interest expense | 48,291 | 39,768 | 34,445 |
Loss on extiguishment of debt | 6,666 | ||
Other income, net | (655) | (364) | (628) |
(Loss) income before income taxes | (131,817) | (14,679) | 45,969 |
Income tax (benefit) expense | (1,133) | (2,149) | 12,600 |
NET (LOSS) INCOME | $ (130,684) | $ (12,530) | $ 33,369 |
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS | |||
Basic: | $ (4.09) | $ (0.38) | $ 1.01 |
Diluted: | $ (4.09) | $ (0.38) | $ 0.99 |
Basic weighted average common shares outstanding | 31,970 | 33,108 | 32,929 |
Diluted weighted average common shares outstanding | 31,970 | 33,108 | 33,681 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
NET (LOSS) INCOME | $ (130,684) | $ (12,530) | $ 33,369 |
Other comprehensive (loss) income, net of tax, foreign currency translation gain (loss) | 1,307 | (4,380) | (1,421) |
Other comprehensive (loss) income, net of tax, reclassification of foreign currency translation gain to income | (354) | ||
COMPREHENSIVE (LOSS) INCOME | $ (129,731) | $ (16,910) | $ 31,948 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2024 | Jan. 27, 2023 |
Current assets | ||
Cash and cash equivalents | $ 25,314 | $ 39,557 |
Restricted cash | 1,976 | 1,834 |
Accounts receivable, net | 35,295 | 44,928 |
Inventories, net | 301,724 | 425,513 |
Prepaid expenses and other current assets | 45,951 | 44,894 |
Total current assets | 410,260 | 556,726 |
Property and equipment, net | 118,033 | 127,638 |
Operating lease right-of-use asset | 23,438 | 30,325 |
Goodwill | 0 | 106,700 |
Intangible asset, net | 257,000 | 257,000 |
Other assets | 2,748 | 3,759 |
TOTAL ASSETS | 811,479 | 1,082,148 |
Current liabilities | ||
Current portion of long-term debt | 13,000 | 13,750 |
Accounts payable | 131,922 | 171,557 |
Lease liability - current | 6,024 | 5,414 |
Accrued expenses and other current liabilities | 108,972 | 106,756 |
Total current liabilities | 259,918 | 297,477 |
Long-term borrowings on ABL Facility | 100,000 | |
Long-term debt, net | 236,170 | 223,506 |
Lease liability - long-term | 22,952 | 31,095 |
Deferred tax liabilities | 48,020 | 45,953 |
Other liabilities | 2,826 | 3,365 |
TOTAL LIABILITIES | 569,886 | 701,396 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01 - authorized: 480,000 shares; issued and outstanding: 31,433 and 32,626, respectively | 315 | 326 |
Additional paid-in capital | 356,764 | 366,181 |
(Accumulated deficit) Retained earnings | (99,417) | 31,267 |
Accumulated other comprehensive loss | (16,069) | (17,022) |
TOTAL STOCKHOLDERS' EQUITY | 241,593 | 380,752 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 811,479 | $ 1,082,148 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 02, 2024 | Jan. 27, 2023 |
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 | 31,433,000 | 32,626,000 |
Common stock, shares outstanding | 31,433,000 | 32,626,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (130,684) | $ (12,530) | $ 33,369 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 38,465 | 38,741 | 39,166 |
Amortization of debt issuance costs | 2,716 | 3,176 | 3,194 |
Loss (gain) on disposal of property and equipment | 93 | (530) | 741 |
Stock-based compensation | 3,827 | 3,753 | 10,156 |
Deferred income taxes | 1,813 | 927 | (782) |
Goodwill and long-lived asset impairment | 106,700 | 468 | |
Loss on extiguishment of debt | 6,666 | ||
Other | (1,335) | (775) | (661) |
Change in operating assets and liabilities: | |||
Accounts receivable, net | 9,861 | 4,503 | (13,170) |
Inventories, net | 124,459 | (45,873) | (4,213) |
Accounts payable | (33,047) | 19,938 | 13,089 |
Other operating assets | (447) | (8,105) | 4,080 |
Other operating liabilities | 1,478 | (40,060) | (14,400) |
Net cash provided by (used in) operating activities | 130,565 | (36,367) | 70,569 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Sales of property and equipment | 7 | 1,967 | |
Purchases of property and equipment | (34,916) | (31,806) | (25,238) |
Net cash used in investing activities | (34,909) | (29,839) | (25,238) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings under ABL Facility | 172,000 | 264,000 | 143,000 |
Payments of borrowings under ABL Facility | (272,000) | (164,000) | (168,000) |
Proceeds from issuance on long-term debt, net of discount | 252,200 | ||
Payments on term loan | (244,063) | (13,750) | (13,750) |
Payments of debt extinguishment costs | (2,338) | ||
Payments of debt issuance costs | (2,735) | (1,232) | |
Payments for taxes related to net share settlement of equity awards | (1,269) | (4,324) | (5,111) |
Purchases and retirement of common stock | (11,902) | (8,463) | |
Net cash (used in) provided by financing activities | (110,107) | 73,463 | (45,093) |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 350 | (2,001) | 103 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (14,101) | 5,256 | 341 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR | 41,391 | 36,135 | 35,794 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR | 27,290 | 41,391 | 36,135 |
SUPPLEMENTAL CASH FLOW DATA | |||
Unpaid liability to acquire property and equipment | 3,853 | 9,998 | 2,627 |
Income taxes paid, net of refunds | 1,108 | 4,763 | 24,868 |
Interest paid | $ 48,099 | $ 34,485 | $ 31,421 |
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 | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss |
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 | ||||
Net Income (Loss) | (130,684) | (130,684) | |||
Cumulative translation adjustment, net of tax | 953 | 953 | |||
Stock-based compensation expense | 3,827 | 3,827 | |||
Vesting of restricted shares | $ 3 | (3) | |||
Vesting of restricted shares, shares | 449 | ||||
Common stock withheld related to net share settlement of equity awards | (1,269) | (1,269) | |||
Common stock withheld related to net share settlement of equity awards, shares | (155) | ||||
Purchases and retirement of common stock | (11,986) | $ (14) | (11,972) | ||
Purchases and retirement of common stock, shares | (1,487) | ||||
Balance at Feb. 02, 2024 | $ 241,593 | $ 315 | $ 356,764 | $ (99,417) | $ (16,069) |
Balance, shares at Feb. 02, 2024 | 31,433 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (130,684) | $ (12,530) | $ 33,369 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 02, 2024 | |
Trading Arrangements, by Individual | |
Title | directors or executive officers |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Feb. 02, 2024 | |
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 solution-based apparel, swimwear, outerwear, accessories, footwear, home products and uniforms. We offer products online at www.landsend.com, through third-party distribution channels and our own Company Operated stores. We also offer products to businesses and schools, for their employees and students, through the Outfitters distribution channel. 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 agreement, providing for a revolving facility, dated as of November 16, 2017, with Wells Fargo Bank, 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 other 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 • Company Operated stores – Lands’ End retail stores in the Retail distribution channel • Current Term Loan Facility – Term loan credit agreement, dated as of December 29, 2023, among the Company, Blue Torch Capital, as Administrative Agent and Collateral Agent, and the lenders party thereto • Debt Facilities – Collectively, the Current Term Loan Facility and ABL Facility • Deferred Awards – Time vesting stock awards • EPS – Earnings per share • FASB – Financial Accounting Standards Board • First Quarter 2024 – The 13 weeks ending May 3, 2024 • Fiscal 2024 – The 52 weeks ending January 31, 2025 • Fiscal 2023 – The 53 weeks ended February 2, 2024 • Fiscal 2022 – The 52 weeks ended January 27, 2023 • Fiscal 2021 – The 52 weeks ended January 28, 2022 • Former 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 • Fourth Quarter 2023 – The 14 weeks ended February 2, 2024 • 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 2023 – The 13 weeks ended July 28, 2023 • Second Quarter 2022 – The 13 weeks ended July 29, 2022 • SOFR – Secured Overnight Funding Rate • Term Loan Adjusted SOFR – SOFR plus adjustments of either (a) 0.11448 % for a one-month interest period, (b) 0.26161 % for a three-month interest period, or (c) 0.42826 % for a six-month interest period • 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 • Third Quarter 2023 – The 13 weeks ended October 27, 2023 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 high interest rates and inflationary pressures, have continued to have 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. Additionally, interest expense could be negatively affected by any continued rate increases due to the variable interest rates associated with the Company’s Debt Facilities. These macroeconomic challenges have led to increased cost of raw materials, packaging materials, labor, energy, fuel and other inputs necessary for the production and distribution of the Company’s products. Global Supply Chain Challenges Like many industries, we 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 increased our logistics costs during the first half of Fiscal 2022. These global supply chain challenges began to normalize in the second half of Fiscal 2022 and throughout Fiscal 2023. Corporate Restructuring The Company reduced approximately 10 % of positions in the corporate offices and the Hong Kong sourcing office during Fiscal 2023. The Company incurred $ 7.3 million of total corporate restructuring costs, which includes $ 6.2 million of employee severance and benefit costs and $ 1.1 million of other related costs, which was recorded in Other operating expense, net in the Consolidated Statements of Operations. As of February 2, 2024, approximately $ 2.9 million of the employee severance and benefit costs and $ 1.1 million of the other related costs had yet to be paid and are included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Lands’ End Japan Closure 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 13, Segment Reporting . The Company incurred closing costs of approximately $ 0.3 million and $ 3.0 million during Fiscal 2023 and Fiscal 2022, respectively, recorded in Other operating expense, net in the Consolidated Statements of Operations. See Note 8, Lands’ End Japan Closure . The final liquidation occurred in First Quarter 2024. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2024 | |
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 2023 February 2, 2024 53 2022 January 27, 2023 52 2021 January 28, 2022 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 2023 Fiscal 2022 Beginning balance $ 728 $ 625 Provision 89 295 Write-offs ( 167 ) ( 192 ) Ending balance $ 650 $ 728 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 93 % of total inventory as of February 2, 2024 and 92 % as of January 27, 2023. If the FIFO method of accounting for inventory had been used, the effect on inventory would have been an increase of $ 1.5 million and $ 1.2 million as of February 2, 2024 and January 27, 2023, respectively. The Company maintains a reserve for excess and obsolete inventory. The reserve is calculated based on historical experience related to liquidation and disposal of identified inventory. The excess and obsolescence reserve balances were $ 18.1 million and $ 13.9 million as of February 2, 2024 and January 27, 2023 , respectively. The increase is primarily due to a specific reserve for the discounted sale of kids inventory to licensee and reserve for excess and obsolete kids and footwear inventory not acquired by licensees. 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 $ 10.3 million and $ 10.4 million as of February 2, 2024 and January 27, 2023, 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 $ 200.5 million, $ 205.6 million and $ 220.0 million for Fiscal 2023, Fiscal 2022 and Fiscal 2021 , 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) February 2, January 27, Land — $ 3,450 $ 3,440 Buildings and improvements 15 - 30 101,232 99,545 Furniture, fixtures and equipment 3 - 10 66,373 59,992 Computer hardware and software 3 - 10 261,764 232,799 Leasehold improvements 3 - 7 12,673 12,761 Construction in progress 17,706 27,235 Gross property and equipment 463,198 435,772 Less: Accumulated depreciation ( 345,165 ) ( 308,134 ) Total property and equipment, net $ 118,033 $ 127,638 As of both February 2, 2024 and January 27, 2023, 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 $ 38.5 million, $ 38.7 million and $ 39.2 million for Fiscal 2023, Fiscal 2022 and Fiscal 2021 , 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 when the Company Operated store meets Same Store Sales status. A Company Operated store is included in U.S. Same Store Sales calculations when it has been open for at least 14 months. 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 2023, Fiscal 2022 and Fiscal 2021 , the Company recognized no impairment, $ 0.5 million and no impairment, respectively, for right-of-use assets and property and equipment of Company Operated store locations. In connection with the preparation of the Company’s financial statements in the Third Quarter 2023 Form 10-Q, the Company tested its long-lived asset groups for impairment as of October 27, 2023. The Company assessed the recoverability of its long-lived asset groups by comparing their projected undiscounted cash flows associated over the remaining estimated useful lives of the primary asset in the long-lived asset group against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. As a result of the testing, the undiscounted cash flows of the remaining asset groups exceeded their respective carrying amount resulting in no impairment. 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. 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. If actual results fall short of our estimates and assumptions used in estimating future cash flows and asset fair values, we may incur future impairment charges that could be material. Goodwill impairment assessments In connection with the preparation of the financial statements included in the Company’s Third Quarter Form 10-Q, the Company considered the decline in the Company’s stock price and market capitalization, as well as current market and macroeconomic conditions, to be a triggering event for the U.S. eCommerce and Outfitters reporting units and therefore completed a test for impairment of goodwill for these reporting units as of October 27, 2023. The Company tested 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. The impairment test resulted in full impairment of $ 70.4 million and $ 36.3 million of goodwill allocated to the Company’s U.S. eCommerce and Outfitters reporting units, respectively. 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 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 connection with the preparation of the financial statements in the Company’s Third Quarter 2023 Form 10-Q, the Company considered the decline in the Company’s stock price and market capitalization, as well as current market and macroeconomic conditions, to be a triggering event for the Lands’ End trade name. The fair value of the trade name indefinite-lived intangible asset was estimated using the relief from royalty method and the testing resulted in no impairment to the Lands’ End trade name. In Fiscal 2023, Fiscal 2022 and Fiscal 2021 , the Company tested the indefinite-lived intangible asset, as required, resulting in the fair value exceeding the carrying value by 6.1 %, 13.3 % and 68.9 %, 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 maturity date is July 29, 2026 . The ABL Facility is available for working capital and other general corporate liquidity needs. There was no balance outstanding as of February 2, 2024. The balance outstanding as of January 27, 2023 was $ 100.0 million. The balance of outstanding letters of credit w as $ 9.1 m illion and $ 10.6 million on February 2, 2024 and January 27, 2023 , 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 $ 35.3 million, $ 44.9 million and $ 49.7 million as of February 2, 2024, 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 February 2, 2024 and January 27, 2023. 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 gains, net, for Fiscal 2023 totaled approximately $ 1.0 million. 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 gain of $ 1.0 million in Fiscal 2023 , a loss of $ 1.0 million in Fiscal 2022 and a gain of $ 0.8 million in Fiscal 2021 . 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 February 2, 2024 is expected to be recognized in Net revenue in First Quarter 2024, as products are delivered to customers. (in thousands) Fiscal 2023 Fiscal 2022 Deferred revenue beginning of period $ 7,484 $ 8,560 Deferred revenue recognized in period ( 7,270 ) ( 8,346 ) Revenue deferred in period 4,100 7,270 Deferred revenue end of period $ 4,314 $ 7,484 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 2023 Fiscal 2022 Balance as of beginning of period $ 33,029 $ 33,070 Gift cards sold 66,392 65,877 Gift cards redeemed ( 60,374 ) ( 64,637 ) Gift card breakage ( 3,443 ) ( 1,281 ) Balance as of end of period $ 35,604 $ 33,029 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 February 2, 2024 and January 27, 2023 , $ 21.6 million and $ 25.0 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 $ 18.9 m illion, $ 17.7 million and $ 17.3 million for Fiscal 2023, Fiscal 2022 and Fiscal 2021, 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 for Fiscal 2023, Fiscal 2022 and Fiscal 2021 . Other Comprehensive Income (Loss) Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments. Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into U.S. Dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial liquidation of a subsidiary, at which time accumulated transactions gains or losses are reclassified into net income. During Fiscal 2023, the Company recognized a net gain of $ 0.4 million of cumulative foreign currency translation adjustments related to the substantial liquidation of Lands’ End Japan. See Note 8, Lands’ End Japan Closure . Fiscal 2023 Fiscal 2022 Fiscal 2021 Beginning balance: Accumulated other comprehensive loss (net of tax of $ 4,525 , $ 3,361 , and $ 2,987 , respectively) $ ( 17,022 ) $ ( 12,642 ) $ ( 11,221 ) Other comprehensive (loss) income Foreign currency translation adjustments (net of tax of $( 348 ), $ 1,164 , and $ 374 , respectively) 1,307 ( 4,380 ) ( 1,421 ) Reclassification of foreign currency translation gain to income (net of tax of $ 94 , $ 0 , and $ 0 , respectively) ( 354 ) — — Ending balance: Accumulated other comprehensive loss (net of tax of $ 4,271 , $ 4,525 , and $ 3,361 , respectively) $ ( 16,069 ) $ ( 17,022 ) $ ( 12,642 ) 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 of Deferred Awards and of Performance Awards granted before Fiscal 2023 are based on the closing price of the Company’s common stock on the grant date. For Performance Awards granted in Fiscal 2023 which include market conditions to determine, in part, vesting, the grant date fair value is based on the Monte Carlo simulation model. 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 and over the applicable performance period for Performance 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 2023 Fiscal 2022 Fiscal 2021 Net (loss) income $ ( 130,684 ) $ ( 12,530 ) $ 33,369 Basic weighted average shares outstanding 31,970 33,108 32,929 Dilutive impact of stock awards — — 752 Diluted weighted average shares outstanding $ 31,970 $ 3 |
Debt
Debt | 12 Months Ended |
Feb. 02, 2024 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 3. DEBT ABL Facility The Company’s $ 275.0 million committed revolving ABL Facility includes a $ 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 (1) the Aggregate Commitments of $ 275.0 million (“ABL Facility Limit”) or (2) the Borrowing Base or Loan Cap which is calculated from Eligible Inventory, Trade Receivables and Credit Card Receivables, all foregoing capitalized terms not defined herein are as defined in the ABL Facility. The following table summarizes the Company’s ABL Facility borrowing availability: February 2, 2024 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate ABL Facility limit $ 275,000 $ 275,000 Borrowing Base 176,311 274,354 Outstanding borrowings — 100,000 6.27 % Outstanding letters of credit 9,070 10,557 ABL Facility utilization at end of period 9,070 110,557 ABL Facility borrowing availability $ 167,241 $ 163,797 Long-Term Debt On December 29, 2023, the Company entered into the Current Term Loan Facility which provides borrowings of $ 260.0 million, the proceeds of which were used to repay all of the indebtedness under the Former Term Loan Facility and to pay fees and expenses in connection with the financing. Origination costs, including a 3 % original issue discount of $ 7.8 million and debt origination fees of $ 2.9 million, were incurred in connection with entering into the Current Term Loan Facility. The original issue discount and the debt origination fees are presented as a direct deduction from the carrying value of the Current Term Loan Facility and Former Term Loan Facility and are amortized over the term of the loan to Interest expense in the Consolidated Statements of Operations. As a result of the Former Term Loan Facility repayment before the scheduled maturity date, the transaction was subject to a 1 % prepayment premium of $ 2.3 million. Additionally, the Company recorded $ 4.4 million for the write off of unamortized original issue discount and debt issuance costs of the Former Term Loan Facility. These charges resulted in a loss on extinguishment of debt of $ 6.7 million in Fourth Quarter 2023. The Company’s long-term debt consisted of the following: February 2, 2024 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate Former Term Loan Facility $ — — % $ 244,063 14.13 % Current Term Loan Facility $ 260,000 13.70 % — — % Less: Current portion of long-term debt 13,000 13,750 Less: Unamortized debt issuance costs 10,830 6,807 Long-term debt, net $ 236,170 $ 223,506 Interest; Fees ABL Facility Effective May 12, 2023, the Company executed the Fourth Amendment (the “Fourth Amendment”) to the ABL Facility which replaced the interest rate benchmark based on LIBOR with an interest rate benchmark based on SOFR plus an adjustment of 0.10 % for all loans (“ABL Adjusted SOFR”). During Second Quarter 2023, the Company adopted ASU 2020-04, the optional practical expedient for Reference Rate and as such, this amendment was treated as a continuation of the existing agreement and no gain or loss on this modification was recorded in the Consolidated Statement of Operations. The ABL Adjusted SOFR rate is now available for all new loans after the effective date of the Fourth Amendment. Effective with the Fourth Amendment, the ABL Facility interest rate, selected at the borrower’s election, is either (1) ABL Adjusted SOFR, or (2) a base rate which is the greater of (a) the federal funds rate plus 0.50 %, (b) the one-month ABL Adjusted SOFR rate plus 1.00 %, or (c) the Wells Fargo “prime rate”. The borrowing margin for ABL Adjusted SOFR 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 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 % (“Applicable Borrowing Margin”). The Applicable Borrowing Margin for all loans is based upon the average daily total loans outstanding for the previous quarter. The Fourth Amendment had no material interest rate impact. Prior to the Fourth Amendment to the ABL Facility, the interest rate, selected at the borrower’s election, was either (1) LIBOR (plus the Applicable Borrowing Margin), or (2) a base rate (plus the Applicable Borrowing Margin) which was 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”. 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, (ii) customary letter of credit fees and (iii) customary annual agent fees. As of February 2, 2024 , the Company had no borrowings outstanding under the ABL Facility. Current Term Loan Facility The interest rates per annum applicable to the loans under the Current Term Loan Facility are based on a fluctuating rate of interest equal to, at the Company’s election, either (1) Term Loan Adjusted SOFR loan (subject to a 2 % floor) plus an applicable margin, or (2) an alternative base rate loan plus an applicable margin. The applicable margin is based on the Company’s net leverage and will be, (i) Term Loan Adjusted SOFR loans, 8.25 % per annum if the total leverage ratio is greater than or equal to 2.75 :1.00, 8.00 % per annum if the total leverage ratio is less than 2.75 :1.00 but greater than or equal to 2.25 :1.00, and 7.75 % per annum if the total leverage ratio is less than 2.25 :1.00 and (ii) for base rate loans, 7.25 % per annum if the total leverage ratio is greater than or equal to 2.75 :1.00, 7.00 % per annum if the total leverage ratio is less than 2.75 :1.00 but greater than or equal to 2.25 :1.00, and 6.75 % per annum if the total leverage ratio is less than 2.25 :1.00. In each case, the net leverage is determined as of the last day of each applicable measurement period. Customary agency fees are payable annually for the Current Term Loan Facility. Former Term Loan Facility Effective June 22, 2023, the Company entered into Amendment No. 1 (the “First Amendment”) to the Former Term Loan Facility which (subject to a 1 % floor) replaced the interest rate benchmark based upon LIBOR with Term Loan Adjusted SOFR. This transition resulted in no material interest rate impact. During Second Quarter 2023, the Company adopted ASU 2020-04, the optional practical expedient for Reference Rate and as such, this amendment was treated as a continuation of the existing agreement and no gain or loss on this modification was recorded in the Consolidated Statement of Operations. Prior to the First Amendment to the Former Term Loan Facility, the interest rate per annum applicable to the loans under the Former Term Loan Facility was based on a fluctuating rate of interest measured by reference to, at the borrower’s election, either (1) a LIBOR rate (with a minimum rate of 1.00 %) plus 9.75 % or (2) an alternative base rate (which was the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which was to 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 %. Effective with the First Amendment to the Former Term Loan Facility, the interest rate per annum applicable to the loans under the Former Term Loan Facility was based on a fluctuating rate of interest measured by reference to, at the borrower’s election, either (1) a Term Adjusted Loan SOFR rate 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 Term Loan Adjusted SOFR rate plus 1.00 % per annum) plus 8.75 %. Customary agency fees were paid annually for the Former Term Loan Facility. Maturity; Amortization and Prepayments The ABL Facility maturity date is July 29, 2026 . The Current Term Loan Facility will mature on December 29, 2028 , will amortize at a rate equal to 1.25 % per quarter. Depending upon the Company’s Total Leverage Ratio, as defined in the Current Term Loan Facility, mandatory prepayments in an amount equal to a percentage of the Company’s excess cash flows in each fiscal year, ranging from 0 % to 75 % are required. The Current Term Loan Facility also has typical prepayment requirements for the proceeds of certain asset sales, casualty events and extraordinary receipts. Voluntary prepayment and certain mandatory prepayments made (i) on or before December 29, 2024 would result in a prepayment premium equal to 3 % of the principal amount of the loan prepaid plus a yield maintenance fee, (ii) between December 30, 2024 and December 29, 2025 would result in a prepayment premium equal to 2 % of the principal amount of the loan prepaid, (iii) between December 30, 2025 and December 29, 2026, would result in a prepayment premium equal to 1 % of the principal amount of the loan prepaid, (iv) between December 30, 2026 and December 29, 2027, would result in a prepayment premium equal to 0.5 % of the principal amount of the loan prepaid and (v) thereafter no prepayment premium is due. The Company’s aggregate scheduled maturities of the Debt Facilities as of February 2, 2024 are as follows: Scheduled maturities (in thousands) 2024 $ 13,000 2025 13,000 2026 13,000 2027 13,000 2028 208,000 Total $ 260,000 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 Current Term Loan Facility is secured by a second priority security interest in the same collateral, with certain exceptions. The Current Term Loan Facility is secured by a first priority security interest in certain property and assets including certain fixed assets such as real estate, stock of 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 Current Term Loan Facility contains financial covenants, including a quarterly maximum total leverage ratio test and a monthly minimum liquidity test. 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 February 2, 2024, the Company was in compliance with its financial covenants in 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 defaults related 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 |
Feb. 02, 2024 | |
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 2023 Fiscal 2022 Fiscal 2021 Operating lease expense $ 6,340 $ 7,466 $ 8,273 Variable lease expense 2,572 2,714 2,312 Total lease expense $ 8,912 $ 10,180 $ 10,585 Short-term lease cost was not material for Fiscal 2023, Fiscal 2022 or Fiscal 2021. Supplemental balance sheet information related to operating leases are as follows: (in thousands) Fiscal 2023 Fiscal 2022 Operating lease right-of-use asset $ 23,438 $ 30,325 Lease liability – current 6,024 5,414 Lease liability – long-term 22,952 31,095 Weighted average remaining lease term in years 5.7 6.6 Weighted average discount rate 6.62 % 6.36 % Supplemental cash flow information related to operating leases are as follows: (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Operating cash outflows from operating leases $ 8,060 $ 9,154 $ 10,509 Operating lease right-of-use-assets (reversal) obtained in exchange for lease liabilities ( 2,236 ) 4,440 1,409 Maturities of operating lease liabilities as of February 2, 2024 are as follows: (in thousands) 2024 $ 7,682 2025 5,671 2026 5,372 2027 5,212 2028 4,462 Thereafter 6,552 Total operating lease payments $ 34,951 Less imputed interest 5,975 Present value of lease liabilities $ 28,976 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 02, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 5. STOCK-BASED COMPENSATION The Company expenses the fair value of all stock awards over the 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. The Performance Awards granted in Fiscal 2023 are subject to a relative total shareholder return (“TSR”) modifier which is based on the Company’s total return to stockholders over the measurement period relative to a custom peer group. The Target Shares earned can range from 50 % to 200 % (such result, the “Earned Shares”) 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. For Fiscal 2023 Performance Awards, the TSR modifier can result in an adjustment of 75 % to 125 % of the Earned Shares, subject to an overall cap of 200 % and a modifier limitation to 100 % in the event TSR is negative. Performance Awards are also subject to limitations under the Company’s stockholder approved stock plans. 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 before Fiscal 2023 are based on the closing price of the Company’s common stock on the grant date. For awards granted in Fiscal 2023 which include market conditions, the grant date fair value is based on the Monte Carlo simulation model. Stock-based compensation expense, including awards with market conditions, is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover and adjusted based on the Company’s estimate of the percentage of the aggregate Target Shares expected to be earned. The 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 more 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 provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Consolidated Statements of Operations: (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Deferred awards $ 3,491 $ 5,744 $ 5,683 Performance awards (1) ( 87 ) ( 2,090 ) 4,370 Option awards 423 99 103 Total stock-based compensation expense $ 3,827 $ 3,753 $ 10,156 (1) Net credit expense for Fiscal 2023 and Fiscal 2022 includes a reduction of the accrual for Performance Awards based on actual and projected results relative to performance measures and forfeitures. Deferred Awards The following table provides a summary of the Deferred Awards activity for Fiscal 2023, Fiscal 2022 and Fiscal 2021. Fiscal Year Ended February 2, 2024 January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Number Weighted Deferred Awards at beginning 906 $ 16.46 913 $ 14.60 1,093 $ 10.86 Granted 844 8.53 503 18.09 247 29.90 Vested ( 449 ) 12.21 ( 398 ) 14.14 ( 401 ) 13.89 Forfeited ( 342 ) 16.53 ( 112 ) 16.94 ( 26 ) 13.46 Deferred Awards at end 959 $ 11.44 906 $ 16.46 913 $ 14.60 Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $ 6.2 m illion as of February 2, 2024 , which is expected to be recognized ratably over a weighted average period of 2.1 years. The total fair value of Deferred Awards vested during Fiscal 2023 and Fiscal 2022 was $ 5.5 mi llion and $ 5.7 million, respectively. Deferred Awards granted to employees during Fiscal 2023 vest over a period of three years . Performance Awards The following table provides a summary of the Performance Awards activity for Fiscal 2023, Fiscal 2022 and Fiscal 2021: Fiscal Year Ended February 2, 2024 January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Number Weighted Performance Awards at 355 $ 24.39 436 $ 21.15 393 $ 18.32 Granted 567 9.74 248 20.65 166 29.95 Change in estimate - performance 42 15.73 Vested — — ( 270 ) 15.73 ( 165 ) 21.90 Forfeited ( 315 ) 19.68 ( 59 ) 24.39 — — Performance Awards at 607 $ 13.14 355 $ 24.39 436 $ 21.15 Total unrecognized stock-based compensation expense related to unvested Performance Awards was approximatel y $ 2.2 m illion as of Fiscal 2023 which is expected to be recognized ratably over a weighted average period of 2.2 years. The Performance Awards granted to employees during Fiscal 2023 vest, if earned, after completion of the applicable three-year performance period. The fair value for the Performance Awards granted during Fiscal 2023, which includes a relative TSR modifier, was estimated on the grant date using a Monte Carlo simulation with the below noted assumptions: Monte Carlo Simulation Assumptions Risk-free interest rate (1) 4.46 % Expected dividend yield 0.00 % Expected volatility (2) 78.04 % Expected term (in years) (3) 2.63 Grant date fair value per share $ 9.74 (1) The risk-free interest is based on the continuously compounded yield on a zero-coupon U.S. Treasury STRIPS as of the grant date for a period equal to the expected term. (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 performance award. (3) The expected term (in years) of the performance award represents the estimated period of time from the grant date to the end of the performance period. Options Awards The following table provides a summary of the changes in outstanding Options Awards for Fiscal 2023 and Fiscal 2022. Fiscal Year Ended February 2, 2024 January 27, 2023 Option Awards Weighted Option Awards Weighted (in thousands, except per share amounts) Option Awards outstanding at beginning of year 511 $ 16.08 343 $ 18.66 Granted — — 168 10.81 Vested — — — — Exercised — — — — Forfeited — — — — Option Awards outstanding at end of year 511 $ 16.08 511 $ 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 February 2, 2024: Option Awards Weighted Weighted Aggregate Intrinsic Value (in thousands, except per share and contractual life amounts) Option Awards vested and expected to vest 511 3.3 $ 16.08 — Option Awards exercisable 385 1.5 $ 17.80 — Total unrecognized stock-based compensation expense related to Option Awards was approximately $ 0.7 million as of February 2, 2024, which is expected to be recognized over a weighted average period of 1.8 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 |
Feb. 02, 2024 | |
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 “2022 Share Repurchase Program”). Under the 2022 Share Repurchase Program, the Company could 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 these purchases was determined by the Company’s management depending upon market conditions and other factors and at times were made pursuant to a Rule 10b5-1 trading plan. Purchases of $ 20.3 million were made under the 2022 Share Repurchase Program which expired on February 2, 2024 . The following table summarizes the Company’s share repurchases during Fiscal 2023 and Fiscal 2022: (Shares and $ in thousands except average per share cost) February 2, 2024 January 27, 2023 Number of shares repurchased 1,487 796 Total cost $ 11,872 $ 8,447 Average per share cost $ 7.98 $ 10.61 The Company retired all shares that were repurchased through the 2022 Share Repurchase Program through February 2, 2024. 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 (Accumulated deficit) 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 (Accumulated deficit) Retained earnings. Shares purchased at a price less than that of initial issuance is charged only against Additional paid-in capital. For all shares retired during Fiscal 2023 and Fiscal 2022 , no amount and $ 7.7 million, respectively, was charged to (Accumulated deficit) Retained earnings. In addition, the total cost of the broker commissions is charged directly to (Accumulated deficit) Retained earnings. On March 15, 2024, the Company announced that its Board of Directors authorized the Company to repurchase up to $ 25.0 million of the Company’s common stock through March 31, 2026 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 02, 2024 | |
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) February 2, January 27, Deferred gift card revenue $ 35,604 $ 33,029 Accrued employee compensation and benefits 28,449 18,125 Reserve for sales returns and allowances 21,560 25,030 Accrued property, sales and other taxes 8,795 9,780 Deferred revenue 4,314 7,484 Accrued interest 1,994 4,456 Other 8,256 8,852 Total Accrued expenses and other current liabilities $ 108,972 $ 106,756 |
Lands' End Japan Closure
Lands' End Japan Closure | 12 Months Ended |
Feb. 02, 2024 | |
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 13, 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 closing costs for employee severance and benefit costs, early termination and restoration costs of lease facilities and contract cancellation and other costs. The final liquidation occurred in First Quarter 2024. The following table summarizes the closing costs of Lands’ End Japan recognized in Other operating expense, net in the Consolidated Statement of Operations for Fiscal 2023 and Fiscal 2022. (in thousands) February 2, 2024 January 27, 2023 Employee severance and benefit costs (1) $ 25 $ 1,795 Early termination and restoration costs of leased facilities ( 16 ) 744 Contract cancellation and other costs 259 448 Total closing costs $ 268 $ 2,987 (1) For fiscal year ending January 27, 2023 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 January 28, 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 Estimated costs payable in cash 25 ( 16 ) 259 268 Cash payments ( 1,050 ) ( 438 ) ( 260 ) ( 1,748 ) Foreign currency translation ( 14 ) ( 18 ) ( 1 ) ( 33 ) Balance as of February 2, 2024 $ 28 $ — $ 15 $ 43 |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Assets and Liabilities | 12 Months Ended |
Feb. 02, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Assets and Liabilities | NOTE 9. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES Cash and cash equivalents and restricted cash is reflected on the Consolidated Balance Sheets at fair value based on Level 1 inputs. Cash and cash equivalents and restricted cash amounts are valued based upon statements received from financial institutions. The fair value of restricted cash was $ 2.0 million and $ 1.8 million as of February 2, 2024 and January 27, 2023, respectively. Carrying amounts and fair values of long-term debt, including current portion, in the Consolidated Balance Sheets are as follows: February 2, 2024 January 27, 2023 (in thousands) Carrying Fair Carrying Fair Long-term debt, including current portion $ 260,000 $ 258,139 $ 244,063 $ 241,728 The Company’s valuation of long-term debt, including current portion, at fair value is considered a Level 3 instrument under the fair value hierarchy. The Company’s valuation techniques include the Black-Derman-Toy (“BDT”) model as well as market inputs from management. The BDT modeling approach is particularly relevant given the Current Term Loan Facility’s features, including the optional redemption provision. There were no nonfinancial assets or no nfinancial liabilities recognized at fair value on a nonrecurring basis as of February 2, 2024 and January 27, 2023 . |
Goodwill and Indefinite Lived I
Goodwill and Indefinite Lived Intangible Assets | 12 Months Ended |
Feb. 02, 2024 | |
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 activity of the Company’s Goodwill: (in thousands) Goodwill Balance January 28, 2022 Gross amount $ 110.0 Accumulated impairment losses ( 3.3 ) Carrying Value 106.7 Impairment loss booked in Fiscal 2022 — Balance January 27, 2023 Gross amount 110.0 Accumulated impairment losses ( 3.3 ) Carrying Value 106.7 Impairment loss booked in Fiscal 2023 106.7 Balance February 2, 2024 Gross amount 110.0 Accumulated impairment losses ( 110.0 ) Carrying Value $ — The carrying value of Intangible asset, net was $ 257.0 million as of February 2, 2024, January 27, 2023 and January 28, 2022 . 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. In connection with the preparation of the financial statements included in the Company’s Third Quarter 2023 Form 10-Q, the Company considered the decline in the Company’s stock price and market capitalization, as well as current market and macroeconomic conditions, to be a triggering event for the U.S. eCommerce and Outfitters reporting units and therefore completed a test for impairment of goodwill for these reporting units as of October 27, 2023. The Company tested 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. The impairment test resulted in full impairment of $ 70.4 million and $ 36.3 million of goodwill allocated to the Company’s U.S. eCommerce and Outfitters reporting units, respectively. In connection with the preparation of the financial statements in the Company’s Third Quarter 2023 Form 10-Q, the Company considered the decline in the Company’s stock price and market capitalization, as well as current market and macroeconomic conditions, to be a triggering event for the Lands’ End trade name. The fair value of the trade name indefinite-lived intangible asset was estimated using the relief from royalty method and the testing resulted in no impairment to the Lands’ End trade name. There was no impairment of the trade name during any period presented. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2024 | |
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 2023 Fiscal 2022 Fiscal 2021 (Loss) income before income taxes United States $ ( 126,745 ) $ 4,646 $ 52,963 Foreign ( 5,072 ) ( 19,325 ) ( 6,994 ) Total (loss) income before income taxes $ ( 131,817 ) $ ( 14,679 ) $ 45,969 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 2023 Fiscal 2022 Fiscal 2021 United States $ ( 1,482 ) $ ( 3,258 ) $ 12,215 Foreign 349 1,109 385 Total (benefit) provision $ ( 1,133 ) $ ( 2,149 ) $ 12,600 (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Current: Federal $ ( 3,092 ) $ ( 3,928 ) $ 11,370 State ( 192 ) ( 273 ) 1,627 Foreign 338 1,125 385 Total current ( 2,946 ) ( 3,076 ) 13,382 Deferred: Federal ( 316 ) 682 ( 1,426 ) State 2,118 261 644 Foreign 11 ( 16 ) — Total deferred 1,813 927 ( 782 ) Total (benefit) provision $ ( 1,133 ) $ ( 2,149 ) $ 12,600 A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Fiscal 2023 Fiscal 2022 Fiscal 2021 Tax at statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit ( 1.1 )% 0.1 % 3.9 % Foreign differential 2.1 % 27.2 % ( 5.2 )% Permanent differences ( 0.8 )% ( 3.4 )% 1.9 % Uncertain tax benefits 0.1 % 1.1 % 1.1 % Change in foreign valuation allowance ( 2.2 )% ( 32.4 )% 4.9 % Goodwill impairment ( 17.0 )% — % — % Other, net ( 1.2 )% 1.0 % ( 0.2 )% Total 0.9 % 14.6 % 27.4 % Deferred tax assets and liabilities consisted of the following: (in thousands) February 2, January 27, January 28, Deferred tax assets Deferred revenue $ 7,388 $ 5,946 $ 6,528 Legal accruals 1,418 2,053 2,461 Deferred compensation 6,100 10,246 18,328 Deferred interest 640 10,011 — Reserve for returns 2,867 2,938 2,958 Inventory 4,510 4,303 3,730 CTA investment in foreign subsidiaries 4,271 4,525 3,361 Operating lease liabilities 7,017 8,112 8,677 Other 1,369 1,980 2,402 Net operating loss carryforward 26,544 11,057 5,211 Total deferred tax assets 62,124 61,171 53,656 Less valuation allowance ( 16,292 ) ( 11,207 ) ( 6,009 ) Net deferred tax assets $ 45,832 $ 49,964 $ 47,647 Deferred tax liabilities Intangible assets $ 61,785 $ 61,715 $ 62,295 LIFO reserve 19,137 21,263 18,118 Property and equipment 5,662 4,461 4,396 Operating lease right-of-use assets 5,709 6,670 7,089 Catalog advertising 1,559 1,808 1,940 Total deferred tax liabilities 93,852 95,917 93,838 Net deferred tax liability $ 48,020 $ 45,953 $ 46,191 As of February 2, 2024, the Company had $ 125.2 million of federal and state net operating loss (“NOL”) carryforwards (generating a $ 14.4 million deferred tax asset) available to offset future taxable income. The federal NOL Carryforward has an indefinite life. The state NOL carryforwards generally expire between 2024 and 2043 with certain state NOLs generated after 2017 having indefinite carryforward. The Company’s foreign subsidiaries had $ 41.9 million of NOL carryforwards (generating a $ 12.1 million deferred tax asset) available to offset future taxable income. These foreign NOLs can be carried forward indefinitely, however, a valuation allowance was established since the future utilization of these NOLs is uncertain. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (“UTBs”) is as follows: Fiscal 2023 Fiscal 2022 Fiscal 2021 Gross UTBs balance at beginning of period $ 1,297 $ 1,477 $ 1,012 Tax positions related to the prior periods - gross ( 156 ) ( 180 ) 539 Settlements — — ( 74 ) Gross UTBs balance at end of period $ 1,141 $ 1,297 $ 1,477 As of February 2, 2024 , the Company had gross UTBs of $ 1.1 million. Of this amount, $ 1.0 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 2020 through 2023 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 February 2, 2024 , 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 27, 2023, the total amount of interest and penalties recognized o n 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2024 | |
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. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 02, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 13. SEGMENT REPORTING During Fiscal 2023, the Company’s operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party and Retail. During Fiscal 2022, the Company’s operating segments included Japan eCommerce. See Note 8, Lands’ End Japan Closure . 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 through eCommerce international websites and third-party affiliates. • 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 but direct to consumers through third-party marketplace websites and through domestic wholesale relationships. • Retail sells products through Company Operated stores. Net revenue is presented by distribution channel in the following tables: (in thousands) Fiscal 2023 % of Net Revenue Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue U.S. eCommerce $ 930,314 63.2 % $ 955,752 61.4 % $ 1,027,138 62.8 % International (1) 112,855 7.7 % 166,627 10.7 % 220,997 13.5 % Outfitters 269,943 18.3 % 265,898 17.1 % 254,191 15.5 % Third Party 111,826 7.6 % 118,996 7.7 % 86,517 5.3 % Retail 47,570 3.2 % 48,156 3.1 % 47,781 2.9 % Total Net revenue $ 1,472,508 $ 1,555,429 $ 1,636,624 (1) Fiscal 2022 and Fiscal 2021 includes Net revenue of $ 32.7 million and $ 43.3 million, respectively, from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure . The geographical allocation of Net revenue is based upon where the product is shipped. The following presents summarized geographical information: (in thousands) Fiscal 2023 % of Net Revenue Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue United States $ 1,342,366 91.2 % $ 1,368,518 88.0 % $ 1,393,402 85.1 % Europe 114,778 7.8 % 135,878 8.7 % 179,302 11.0 % Asia (1) 569 0.0 % 33,451 2.2 % 44,383 2.7 % Other 14,795 1.0 % 17,582 1.1 % 19,537 1.2 % Total Net revenue $ 1,472,508 $ 1,555,429 $ 1,636,624 (1) Fiscal 2022 and Fiscal 2021 includes Net revenue of $ 32.7 million and $ 43.3 million, respectively, from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure . 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 2023 Fiscal 2022 Fiscal 2021 United States $ 111,254 $ 120,311 $ 121,259 Europe 6,588 7,051 7,879 Asia 191 276 653 Total long-lived assets $ 118,033 $ 127,638 $ 129,791 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 |
Feb. 02, 2024 | |
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 2023 February 2, 2024 53 2022 January 27, 2023 52 2021 January 28, 2022 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 2023 Fiscal 2022 Beginning balance $ 728 $ 625 Provision 89 295 Write-offs ( 167 ) ( 192 ) Ending balance $ 650 $ 728 |
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 93 % of total inventory as of February 2, 2024 and 92 % as of January 27, 2023. If the FIFO method of accounting for inventory had been used, the effect on inventory would have been an increase of $ 1.5 million and $ 1.2 million as of February 2, 2024 and January 27, 2023, respectively. The Company maintains a reserve for excess and obsolete inventory. The reserve is calculated based on historical experience related to liquidation and disposal of identified inventory. The excess and obsolescence reserve balances were $ 18.1 million and $ 13.9 million as of February 2, 2024 and January 27, 2023 , respectively. The increase is primarily due to a specific reserve for the discounted sale of kids inventory to licensee and reserve for excess and obsolete kids and footwear inventory not acquired by licensees. |
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 $ 10.3 million and $ 10.4 million as of February 2, 2024 and January 27, 2023, 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 $ 200.5 million, $ 205.6 million and $ 220.0 million for Fiscal 2023, Fiscal 2022 and Fiscal 2021 , 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) February 2, January 27, Land — $ 3,450 $ 3,440 Buildings and improvements 15 - 30 101,232 99,545 Furniture, fixtures and equipment 3 - 10 66,373 59,992 Computer hardware and software 3 - 10 261,764 232,799 Leasehold improvements 3 - 7 12,673 12,761 Construction in progress 17,706 27,235 Gross property and equipment 463,198 435,772 Less: Accumulated depreciation ( 345,165 ) ( 308,134 ) Total property and equipment, net $ 118,033 $ 127,638 As of both February 2, 2024 and January 27, 2023, 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 $ 38.5 million, $ 38.7 million and $ 39.2 million for Fiscal 2023, Fiscal 2022 and Fiscal 2021 , 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 when the Company Operated store meets Same Store Sales status. A Company Operated store is included in U.S. Same Store Sales calculations when it has been open for at least 14 months. 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 2023, Fiscal 2022 and Fiscal 2021 , the Company recognized no impairment, $ 0.5 million and no impairment, respectively, for right-of-use assets and property and equipment of Company Operated store locations. In connection with the preparation of the Company’s financial statements in the Third Quarter 2023 Form 10-Q, the Company tested its long-lived asset groups for impairment as of October 27, 2023. The Company assessed the recoverability of its long-lived asset groups by comparing their projected undiscounted cash flows associated over the remaining estimated useful lives of the primary asset in the long-lived asset group against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. As a result of the testing, the undiscounted cash flows of the remaining asset groups exceeded their respective carrying amount resulting in no impairment. |
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. 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. If actual results fall short of our estimates and assumptions used in estimating future cash flows and asset fair values, we may incur future impairment charges that could be material. Goodwill impairment assessments In connection with the preparation of the financial statements included in the Company’s Third Quarter Form 10-Q, the Company considered the decline in the Company’s stock price and market capitalization, as well as current market and macroeconomic conditions, to be a triggering event for the U.S. eCommerce and Outfitters reporting units and therefore completed a test for impairment of goodwill for these reporting units as of October 27, 2023. The Company tested 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. The impairment test resulted in full impairment of $ 70.4 million and $ 36.3 million of goodwill allocated to the Company’s U.S. eCommerce and Outfitters reporting units, respectively. 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 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 connection with the preparation of the financial statements in the Company’s Third Quarter 2023 Form 10-Q, the Company considered the decline in the Company’s stock price and market capitalization, as well as current market and macroeconomic conditions, to be a triggering event for the Lands’ End trade name. The fair value of the trade name indefinite-lived intangible asset was estimated using the relief from royalty method and the testing resulted in no impairment to the Lands’ End trade name. In Fiscal 2023, Fiscal 2022 and Fiscal 2021 , the Company tested the indefinite-lived intangible asset, as required, resulting in the fair value exceeding the carrying value by 6.1 %, 13.3 % and 68.9 %, 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 maturity date is July 29, 2026 . The ABL Facility is available for working capital and other general corporate liquidity needs. There was no balance outstanding as of February 2, 2024. The balance outstanding as of January 27, 2023 was $ 100.0 million. The balance of outstanding letters of credit w as $ 9.1 m illion and $ 10.6 million on February 2, 2024 and January 27, 2023 , 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 $ 35.3 million, $ 44.9 million and $ 49.7 million as of February 2, 2024, 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 February 2, 2024 and January 27, 2023. 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 gains, net, for Fiscal 2023 totaled approximately $ 1.0 million. 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 gain of $ 1.0 million in Fiscal 2023 , a loss of $ 1.0 million in Fiscal 2022 and a gain of $ 0.8 million in Fiscal 2021 . 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 February 2, 2024 is expected to be recognized in Net revenue in First Quarter 2024, as products are delivered to customers. (in thousands) Fiscal 2023 Fiscal 2022 Deferred revenue beginning of period $ 7,484 $ 8,560 Deferred revenue recognized in period ( 7,270 ) ( 8,346 ) Revenue deferred in period 4,100 7,270 Deferred revenue end of period $ 4,314 $ 7,484 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 2023 Fiscal 2022 Balance as of beginning of period $ 33,029 $ 33,070 Gift cards sold 66,392 65,877 Gift cards redeemed ( 60,374 ) ( 64,637 ) Gift card breakage ( 3,443 ) ( 1,281 ) Balance as of end of period $ 35,604 $ 33,029 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 February 2, 2024 and January 27, 2023 , $ 21.6 million and $ 25.0 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 $ 18.9 m illion, $ 17.7 million and $ 17.3 million for Fiscal 2023, Fiscal 2022 and Fiscal 2021, 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 for Fiscal 2023, Fiscal 2022 and Fiscal 2021 . |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments. Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into U.S. Dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial liquidation of a subsidiary, at which time accumulated transactions gains or losses are reclassified into net income. During Fiscal 2023, the Company recognized a net gain of $ 0.4 million of cumulative foreign currency translation adjustments related to the substantial liquidation of Lands’ End Japan. See Note 8, Lands’ End Japan Closure . Fiscal 2023 Fiscal 2022 Fiscal 2021 Beginning balance: Accumulated other comprehensive loss (net of tax of $ 4,525 , $ 3,361 , and $ 2,987 , respectively) $ ( 17,022 ) $ ( 12,642 ) $ ( 11,221 ) Other comprehensive (loss) income Foreign currency translation adjustments (net of tax of $( 348 ), $ 1,164 , and $ 374 , respectively) 1,307 ( 4,380 ) ( 1,421 ) Reclassification of foreign currency translation gain to income (net of tax of $ 94 , $ 0 , and $ 0 , respectively) ( 354 ) — — Ending balance: Accumulated other comprehensive loss (net of tax of $ 4,271 , $ 4,525 , and $ 3,361 , respectively) $ ( 16,069 ) $ ( 17,022 ) $ ( 12,642 ) |
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 of Deferred Awards and of Performance Awards granted before Fiscal 2023 are based on the closing price of the Company’s common stock on the grant date. For Performance Awards granted in Fiscal 2023 which include market conditions to determine, in part, vesting, the grant date fair value is based on the Monte Carlo simulation model. 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 and over the applicable performance period for Performance 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 2023 Fiscal 2022 Fiscal 2021 Net (loss) income $ ( 130,684 ) $ ( 12,530 ) $ 33,369 Basic weighted average shares outstanding 31,970 33,108 32,929 Dilutive impact of stock awards — — 752 Diluted weighted average shares outstanding $ 31,970 $ 33,108 $ 33,681 (Loss) earnings per share Basic $ ( 4.09 ) $ ( 0.38 ) $ 1.01 Diluted $ ( 4.09 ) $ ( 0.38 ) $ 0.99 Anti-dilutive shares excluded from diluted earnings (loss) per common share calculation 1,021 1,186 93 Stock awards are considered anti-dilutive based on the application of the treasury stock method or in the event of a net loss. |
Repurchase of Common Stock | Repurchases of Common Stock Shares of the Company’s common stock may be 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 (Accumulated deficit) 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 portion charged to (Accumulated deficit) 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 (Accumulated deficit) Retained earnings. All shares repurchased under the 2022 Share Repurchase Program have been retired. See Note 6, Stockholders’ Equity . |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedge relationships and sale or transfer of debt securities classified as held-to-maturity. This ASU, which was effective upon issuance and modified by ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of Sunset Date of Topic 848 , may be applied through December 31, 2024, is applicable to all contracts and hedging relationships that reference the LIBOR or any other reference rate expected to be discontinued. The guidance in ASU 2020-04 may be implemented over time as reference rate reform activities occur. As part of the response to the reference rate reform, during Second Quarter 2023, the Company amended the ABL Facility and Former Term Loan Facility to replace the interest rate based upon the LIBOR benchmark to the SOFR benchmark. See Note 5, Debt for additional details regarding these changes. Concurrent with the amendments, the Company adopted ASU 2020-04. The Company utilized optional practical expedients for contract modifications under ASC 848-20-358 Contracts within the Scope of Topic 470 and the adoption of ASU 2020-04 did not have a material impact on the Company’s Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The Company is currently assessing the impact of ASU 2023-07 on the Company’s Consolidated Financial Statement disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which includes requirements that an entity disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are greater than five percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income rate. The standard also requires that entities disclose income (or loss) from continuing operations before income tax expense (or benefit) and income tax expense (or benefit) each disaggregated between domestic and foreign. ASU 2023-09 is effective for the annual periods beginning after December 15, 2024. The Company is currently assessing the impact of ASU 2023-09 on the Company’s Consolidated Financial Statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
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 2023 Fiscal 2022 Beginning balance $ 728 $ 625 Provision 89 295 Write-offs ( 167 ) ( 192 ) Ending balance $ 650 $ 728 |
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) February 2, January 27, Land — $ 3,450 $ 3,440 Buildings and improvements 15 - 30 101,232 99,545 Furniture, fixtures and equipment 3 - 10 66,373 59,992 Computer hardware and software 3 - 10 261,764 232,799 Leasehold improvements 3 - 7 12,673 12,761 Construction in progress 17,706 27,235 Gross property and equipment 463,198 435,772 Less: Accumulated depreciation ( 345,165 ) ( 308,134 ) Total property and equipment, net $ 118,033 $ 127,638 |
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 February 2, 2024 is expected to be recognized in Net revenue in First Quarter 2024, as products are delivered to customers. (in thousands) Fiscal 2023 Fiscal 2022 Deferred revenue beginning of period $ 7,484 $ 8,560 Deferred revenue recognized in period ( 7,270 ) ( 8,346 ) Revenue deferred in period 4,100 7,270 Deferred revenue end of period $ 4,314 $ 7,484 |
Gift Card Reconciliation | The following table provides the reconciliation of the contract liability related to gift cards: (in thousands) Fiscal 2023 Fiscal 2022 Balance as of beginning of period $ 33,029 $ 33,070 Gift cards sold 66,392 65,877 Gift cards redeemed ( 60,374 ) ( 64,637 ) Gift card breakage ( 3,443 ) ( 1,281 ) Balance as of end of period $ 35,604 $ 33,029 |
Schedule of Other Comprehensive Income (Loss) | Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments. Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into U.S. Dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial liquidation of a subsidiary, at which time accumulated transactions gains or losses are reclassified into net income. During Fiscal 2023, the Company recognized a net gain of $ 0.4 million of cumulative foreign currency translation adjustments related to the substantial liquidation of Lands’ End Japan. See Note 8, Lands’ End Japan Closure . Fiscal 2023 Fiscal 2022 Fiscal 2021 Beginning balance: Accumulated other comprehensive loss (net of tax of $ 4,525 , $ 3,361 , and $ 2,987 , respectively) $ ( 17,022 ) $ ( 12,642 ) $ ( 11,221 ) Other comprehensive (loss) income Foreign currency translation adjustments (net of tax of $( 348 ), $ 1,164 , and $ 374 , respectively) 1,307 ( 4,380 ) ( 1,421 ) Reclassification of foreign currency translation gain to income (net of tax of $ 94 , $ 0 , and $ 0 , respectively) ( 354 ) — — Ending balance: Accumulated other comprehensive loss (net of tax of $ 4,271 , $ 4,525 , and $ 3,361 , respectively) $ ( 16,069 ) $ ( 17,022 ) $ ( 12,642 ) |
Schedule of Components of Basic and Diluted EPS | The following table summarizes the components of basic and diluted EPS: (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Net (loss) income $ ( 130,684 ) $ ( 12,530 ) $ 33,369 Basic weighted average shares outstanding 31,970 33,108 32,929 Dilutive impact of stock awards — — 752 Diluted weighted average shares outstanding $ 31,970 $ 33,108 $ 33,681 (Loss) earnings per share Basic $ ( 4.09 ) $ ( 0.38 ) $ 1.01 Diluted $ ( 4.09 ) $ ( 0.38 ) $ 0.99 Anti-dilutive shares excluded from diluted earnings (loss) per common share calculation 1,021 1,186 93 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Company's Maximum Borrowing Availability Under ABL Facility | February 2, 2024 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate ABL Facility limit $ 275,000 $ 275,000 Borrowing Base 176,311 274,354 Outstanding borrowings — 100,000 6.27 % Outstanding letters of credit 9,070 10,557 ABL Facility utilization at end of period 9,070 110,557 ABL Facility borrowing availability $ 167,241 $ 163,797 |
Schedule of Company's Long Term Debt | The Company’s long-term debt consisted of the following: February 2, 2024 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate Former Term Loan Facility $ — — % $ 244,063 14.13 % Current Term Loan Facility $ 260,000 13.70 % — — % Less: Current portion of long-term debt 13,000 13,750 Less: Unamortized debt issuance costs 10,830 6,807 Long-term debt, net $ 236,170 $ 223,506 |
Schedule of Aggregate Scheduled Maturities | The Company’s aggregate scheduled maturities of the Debt Facilities as of February 2, 2024 are as follows: Scheduled maturities (in thousands) 2024 $ 13,000 2025 13,000 2026 13,000 2027 13,000 2028 208,000 Total $ 260,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Leases [Abstract] | |
Components of Lease Expense | 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 2023 Fiscal 2022 Fiscal 2021 Operating lease expense $ 6,340 $ 7,466 $ 8,273 Variable lease expense 2,572 2,714 2,312 Total lease expense $ 8,912 $ 10,180 $ 10,585 |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases are as follows: (in thousands) Fiscal 2023 Fiscal 2022 Operating lease right-of-use asset $ 23,438 $ 30,325 Lease liability – current 6,024 5,414 Lease liability – long-term 22,952 31,095 Weighted average remaining lease term in years 5.7 6.6 Weighted average discount rate 6.62 % 6.36 % |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases are as follows: (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Operating cash outflows from operating leases $ 8,060 $ 9,154 $ 10,509 Operating lease right-of-use-assets (reversal) obtained in exchange for lease liabilities ( 2,236 ) 4,440 1,409 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of February 2, 2024 are as follows: (in thousands) 2024 $ 7,682 2025 5,671 2026 5,372 2027 5,212 2028 4,462 Thereafter 6,552 Total operating lease payments $ 34,951 Less imputed interest 5,975 Present value of lease liabilities $ 28,976 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock-Based Compensation Expense | The following table provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Consolidated Statements of Operations: (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Deferred awards $ 3,491 $ 5,744 $ 5,683 Performance awards (1) ( 87 ) ( 2,090 ) 4,370 Option awards 423 99 103 Total stock-based compensation expense $ 3,827 $ 3,753 $ 10,156 (1) Net credit expense for Fiscal 2023 and Fiscal 2022 includes a reduction of the accrual for Performance Awards based on actual and projected results relative to performance measures and forfeitures. |
Summary of Deferred Awards Activity | The following table provides a summary of the Deferred Awards activity for Fiscal 2023, Fiscal 2022 and Fiscal 2021. Fiscal Year Ended February 2, 2024 January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Number Weighted Deferred Awards at beginning 906 $ 16.46 913 $ 14.60 1,093 $ 10.86 Granted 844 8.53 503 18.09 247 29.90 Vested ( 449 ) 12.21 ( 398 ) 14.14 ( 401 ) 13.89 Forfeited ( 342 ) 16.53 ( 112 ) 16.94 ( 26 ) 13.46 Deferred Awards at end 959 $ 11.44 906 $ 16.46 913 $ 14.60 |
Summary of Performance Awards Activity | The following table provides a summary of the Performance Awards activity for Fiscal 2023, Fiscal 2022 and Fiscal 2021: Fiscal Year Ended February 2, 2024 January 27, 2023 January 28, 2022 (in thousands, except per share amounts) Number Weighted Number Weighted Number Weighted Performance Awards at 355 $ 24.39 436 $ 21.15 393 $ 18.32 Granted 567 9.74 248 20.65 166 29.95 Change in estimate - performance 42 15.73 Vested — — ( 270 ) 15.73 ( 165 ) 21.90 Forfeited ( 315 ) 19.68 ( 59 ) 24.39 — — Performance Awards at 607 $ 13.14 355 $ 24.39 436 $ 21.15 |
Summary of Changes in Outstanding Options Awards | The following table provides a summary of the changes in outstanding Options Awards for Fiscal 2023 and Fiscal 2022. Fiscal Year Ended February 2, 2024 January 27, 2023 Option Awards Weighted Option Awards Weighted (in thousands, except per share amounts) Option Awards outstanding at beginning of year 511 $ 16.08 343 $ 18.66 Granted — — 168 10.81 Vested — — — — Exercised — — — — Forfeited — — — — Option Awards outstanding at end of year 511 $ 16.08 511 $ 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 February 2, 2024: Option Awards Weighted Weighted Aggregate Intrinsic Value (in thousands, except per share and contractual life amounts) Option Awards vested and expected to vest 511 3.3 $ 16.08 — Option Awards exercisable 385 1.5 $ 17.80 — |
Performance Awards | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Grant Date Fair Value of Award Granted | The fair value for the Performance Awards granted during Fiscal 2023, which includes a relative TSR modifier, was estimated on the grant date using a Monte Carlo simulation with the below noted assumptions: Monte Carlo Simulation Assumptions Risk-free interest rate (1) 4.46 % Expected dividend yield 0.00 % Expected volatility (2) 78.04 % Expected term (in years) (3) 2.63 Grant date fair value per share $ 9.74 (1) The risk-free interest is based on the continuously compounded yield on a zero-coupon U.S. Treasury STRIPS as of the grant date for a period equal to the expected term. (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 performance award. (3) The expected term (in years) of the performance award represents the estimated period of time from the grant date to the end of the performance period. |
Employee Stock Option | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Grant Date Fair Value of 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 |
Feb. 02, 2024 | |
Share Repurchase Program | |
Equity Class of Treasury Stock [Line Items] | |
Summary of Share Repurchases | The following table summarizes the Company’s share repurchases during Fiscal 2023 and Fiscal 2022: (Shares and $ in thousands except average per share cost) February 2, 2024 January 27, 2023 Number of shares repurchased 1,487 796 Total cost $ 11,872 $ 8,447 Average per share cost $ 7.98 $ 10.61 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in thousands) February 2, January 27, Deferred gift card revenue $ 35,604 $ 33,029 Accrued employee compensation and benefits 28,449 18,125 Reserve for sales returns and allowances 21,560 25,030 Accrued property, sales and other taxes 8,795 9,780 Deferred revenue 4,314 7,484 Accrued interest 1,994 4,456 Other 8,256 8,852 Total Accrued expenses and other current liabilities $ 108,972 $ 106,756 |
Lands' End Japan Closure (Table
Lands' End Japan Closure (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Restructuring and Related Activities [Abstract] | |
Summary of Closing Costs of Lands' End Japan Recognized in Other Operating Expense | The following table summarizes the closing costs of Lands’ End Japan recognized in Other operating expense, net in the Consolidated Statement of Operations for Fiscal 2023 and Fiscal 2022. (in thousands) February 2, 2024 January 27, 2023 Employee severance and benefit costs (1) $ 25 $ 1,795 Early termination and restoration costs of leased facilities ( 16 ) 744 Contract cancellation and other costs 259 448 Total closing costs $ 268 $ 2,987 (1) For fiscal year ending January 27, 2023 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 January 28, 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 Estimated costs payable in cash 25 ( 16 ) 259 268 Cash payments ( 1,050 ) ( 438 ) ( 260 ) ( 1,748 ) Foreign currency translation ( 14 ) ( 18 ) ( 1 ) ( 33 ) Balance as of February 2, 2024 $ 28 $ — $ 15 $ 43 |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | Carrying amounts and fair values of long-term debt, including current portion, in the Consolidated Balance Sheets are as follows: February 2, 2024 January 27, 2023 (in thousands) Carrying Fair Carrying Fair Long-term debt, including current portion $ 260,000 $ 258,139 $ 244,063 $ 241,728 |
Goodwill and Indefinite Lived_2
Goodwill and Indefinite Lived Intangible Assets (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Intangible Asset Net | The following table summarizes the activity of the Company’s Goodwill: (in thousands) Goodwill Balance January 28, 2022 Gross amount $ 110.0 Accumulated impairment losses ( 3.3 ) Carrying Value 106.7 Impairment loss booked in Fiscal 2022 — Balance January 27, 2023 Gross amount 110.0 Accumulated impairment losses ( 3.3 ) Carrying Value 106.7 Impairment loss booked in Fiscal 2023 106.7 Balance February 2, 2024 Gross amount 110.0 Accumulated impairment losses ( 110.0 ) Carrying Value $ — The carrying value of Intangible asset, net was $ 257.0 million as of February 2, 2024, January 27, 2023 and January 28, 2022 . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) 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 2023 Fiscal 2022 Fiscal 2021 (Loss) income before income taxes United States $ ( 126,745 ) $ 4,646 $ 52,963 Foreign ( 5,072 ) ( 19,325 ) ( 6,994 ) Total (loss) income before income taxes $ ( 131,817 ) $ ( 14,679 ) $ 45,969 |
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 2023 Fiscal 2022 Fiscal 2021 United States $ ( 1,482 ) $ ( 3,258 ) $ 12,215 Foreign 349 1,109 385 Total (benefit) provision $ ( 1,133 ) $ ( 2,149 ) $ 12,600 (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 Current: Federal $ ( 3,092 ) $ ( 3,928 ) $ 11,370 State ( 192 ) ( 273 ) 1,627 Foreign 338 1,125 385 Total current ( 2,946 ) ( 3,076 ) 13,382 Deferred: Federal ( 316 ) 682 ( 1,426 ) State 2,118 261 644 Foreign 11 ( 16 ) — Total deferred 1,813 927 ( 782 ) Total (benefit) provision $ ( 1,133 ) $ ( 2,149 ) $ 12,600 |
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 2023 Fiscal 2022 Fiscal 2021 Tax at statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit ( 1.1 )% 0.1 % 3.9 % Foreign differential 2.1 % 27.2 % ( 5.2 )% Permanent differences ( 0.8 )% ( 3.4 )% 1.9 % Uncertain tax benefits 0.1 % 1.1 % 1.1 % Change in foreign valuation allowance ( 2.2 )% ( 32.4 )% 4.9 % Goodwill impairment ( 17.0 )% — % — % Other, net ( 1.2 )% 1.0 % ( 0.2 )% Total 0.9 % 14.6 % 27.4 % |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: (in thousands) February 2, January 27, January 28, Deferred tax assets Deferred revenue $ 7,388 $ 5,946 $ 6,528 Legal accruals 1,418 2,053 2,461 Deferred compensation 6,100 10,246 18,328 Deferred interest 640 10,011 — Reserve for returns 2,867 2,938 2,958 Inventory 4,510 4,303 3,730 CTA investment in foreign subsidiaries 4,271 4,525 3,361 Operating lease liabilities 7,017 8,112 8,677 Other 1,369 1,980 2,402 Net operating loss carryforward 26,544 11,057 5,211 Total deferred tax assets 62,124 61,171 53,656 Less valuation allowance ( 16,292 ) ( 11,207 ) ( 6,009 ) Net deferred tax assets $ 45,832 $ 49,964 $ 47,647 Deferred tax liabilities Intangible assets $ 61,785 $ 61,715 $ 62,295 LIFO reserve 19,137 21,263 18,118 Property and equipment 5,662 4,461 4,396 Operating lease right-of-use assets 5,709 6,670 7,089 Catalog advertising 1,559 1,808 1,940 Total deferred tax liabilities 93,852 95,917 93,838 Net deferred tax liability $ 48,020 $ 45,953 $ 46,191 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits (“UTBs”) is as follows: Fiscal 2023 Fiscal 2022 Fiscal 2021 Gross UTBs balance at beginning of period $ 1,297 $ 1,477 $ 1,012 Tax positions related to the prior periods - gross ( 156 ) ( 180 ) 539 Settlements — — ( 74 ) Gross UTBs balance at end of period $ 1,141 $ 1,297 $ 1,477 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 02, 2024 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Distribution Channel | Net revenue is presented by distribution channel in the following tables: (in thousands) Fiscal 2023 % of Net Revenue Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue U.S. eCommerce $ 930,314 63.2 % $ 955,752 61.4 % $ 1,027,138 62.8 % International (1) 112,855 7.7 % 166,627 10.7 % 220,997 13.5 % Outfitters 269,943 18.3 % 265,898 17.1 % 254,191 15.5 % Third Party 111,826 7.6 % 118,996 7.7 % 86,517 5.3 % Retail 47,570 3.2 % 48,156 3.1 % 47,781 2.9 % Total Net revenue $ 1,472,508 $ 1,555,429 $ 1,636,624 (1) Fiscal 2022 and Fiscal 2021 includes Net revenue of $ 32.7 million and $ 43.3 million, respectively, from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure . |
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 2023 % of Net Revenue Fiscal 2022 % of Net Revenue Fiscal 2021 % of Net Revenue United States $ 1,342,366 91.2 % $ 1,368,518 88.0 % $ 1,393,402 85.1 % Europe 114,778 7.8 % 135,878 8.7 % 179,302 11.0 % Asia (1) 569 0.0 % 33,451 2.2 % 44,383 2.7 % Other 14,795 1.0 % 17,582 1.1 % 19,537 1.2 % Total Net revenue $ 1,472,508 $ 1,555,429 $ 1,636,624 (1) Fiscal 2022 and Fiscal 2021 includes Net revenue of $ 32.7 million and $ 43.3 million, respectively, from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure . |
Summary of Property and Equipment Net by Geographical Location | Property and equipment, net by geographical location are as follows: (in thousands) Fiscal 2023 Fiscal 2022 Fiscal 2021 United States $ 111,254 $ 120,311 $ 121,259 Europe 6,588 7,051 7,879 Asia 191 276 653 Total long-lived assets $ 118,033 $ 127,638 $ 129,791 |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 22, 2023 | Feb. 02, 2024 | Jan. 27, 2023 | ||
Unusual Risk Or Uncertainty [Line Items] | ||||
Corporate restructuring, percentage of reduced corporate positions | 10% | |||
Corporate restructuring | $ 268 | $ 2,987 | ||
Employee severance and benefit costs | [1] | 25 | 1,795 | |
Employee Severance and Benefit Costs [Member] | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Corporate restructuring costs, yet to be paid | 2,900 | |||
Other Related Costs [Member] | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Corporate restructuring costs, yet to be paid | 1,100 | |||
Other Operating Expense (Income) | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Corporate restructuring | 7,300 | |||
Employee severance and benefit costs | 6,200 | |||
Corporate restructuring, other related costs | 1,100 | |||
One-time closing costs | $ 300 | $ 3,000 | ||
Term Loan Facility | Secured Debt | One Month Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Spread on variable rate | 0.11448% | |||
Term Loan Facility | Secured Debt | Three Month Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Spread on variable rate | 0.26161% | |||
Term Loan Facility | Secured Debt | Six Month Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Spread on variable rate | 0.42826% | |||
[1] For fiscal year ending January 27, 2023 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 | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 728 | $ 625 |
Provision | 89 | 295 |
Write-offs | (167) | (192) |
Ending balance | $ 650 | $ 728 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Increase in inventories | $ (124,459) | $ 45,873 | $ 4,213 |
Reserve for excess and obsolete inventory | $ 18,100 | $ 13,900 | |
United States | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of LIFO inventory | 93% | 92% | |
LIFO | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Increase in inventories | $ 1,500 | $ 1,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details1) - USD ($) shares in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Significant Accounting Policies [Line Items] | |||
Unamortized marketing costs | $ 10,300,000 | $ 10,400,000 | |
Marketing expenses | 200,500,000 | 205,600,000 | $ 220,000,000 |
Depreciation expense | $ 38,500,000 | 38,700,000 | 39,200,000 |
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. | ||
Company operated store duration | 14 months | ||
Impairment of property and equipment | $ 0 | 500,000 | 0 |
Goodwill impairment | 106,700,000 | ||
Accounts receivable, net | 35,295,000 | 44,928,000 | 49,700,000 |
Foreign currency translation adjustments | 953,000 | (4,380,000) | (1,421,000) |
Total self insurance expenses | 18,900,000 | 17,700,000 | 17,300,000 |
401(k) plan expense | 3,900,000 | $ 3,900,000 | $ 3,900,000 |
Cumulative foreign currency translation adjustments | $ 400,000 | ||
Options awards expiration period | 10 years | ||
Antidilutive shares excluded from diluted weighted average shares outstanding | 1,021 | 1,186 | 93 |
Accrued Expenses and Other Current Liabilities | |||
Significant Accounting Policies [Line Items] | |||
Refund liabilities | $ 21,600,000 | $ 25,000,000 | |
Cost Of Sales | |||
Significant Accounting Policies [Line Items] | |||
Foreign currency translation adjustments | 1,000,000 | 4,400,000 | $ 1,400,000 |
Foreign exchange transaction adjustments | $ (1,000,000) | (1,000,000) | $ 800,000 |
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] | |||
Line of credit facility, maximum borrowing capacity | $ 275,000,000 | 275,000,000 | |
Line of credit | 0 | 100,000,000 | |
Letter of credit outstanding amount | $ 9,070,000 | $ 10,557,000 | |
ABL Facility | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Line of credit facility, maturity date | Jul. 29, 2026 | ||
ABL Facility | Letter of Credit | |||
Significant Accounting Policies [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 70,000,000 | ||
Trade Names | |||
Significant Accounting Policies [Line Items] | |||
Reporting units exceeded the carrying value percentage | 6.10% | 13.30% | 68.90% |
Impairment of indefinite intangible asset excluding goodwill | $ 0 | $ 0 | $ 0 |
US eCommerce | |||
Significant Accounting Policies [Line Items] | |||
Goodwill impairment | 70,400,000 | ||
Outfitters | |||
Significant Accounting Policies [Line Items] | |||
Goodwill impairment | $ 36,300,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Plant and Equipment (Details) - USD ($) $ in Thousands | Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 |
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 463,198 | $ 435,772 | |
Less: Accumulated depreciation | (345,165) | (308,134) | |
Total property and equipment, net | 118,033 | 127,638 | $ 129,791 |
Land | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | 3,450 | 3,440 | |
Buildings and improvements | |||
Property Plant And Equipment [Line Items] | |||
Gross property and equipment | $ 101,232 | 99,545 | |
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 | $ 66,373 | 59,992 | |
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 | $ 261,764 | 232,799 | |
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 | $ 12,673 | 12,761 | |
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 | $ 17,706 | $ 27,235 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Deferred Revenue Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred revenue beginning of period | $ 7,484 | $ 8,560 |
Deferred revenue recognized in period | (7,270) | (8,346) |
Revenue deferred in period | 4,100 | 7,270 |
Deferred revenue end of period | $ 4,314 | $ 7,484 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Gift Card Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Gift Card Reconciliation [Abstract] | ||
Gift card liability at beginning of period | $ 33,029 | $ 33,070 |
Gift cards sold | 66,392 | 65,877 |
Gift cards redeemed | (60,374) | (64,637) |
Gift card breakage | (3,443) | (1,281) |
Balance as of end of period | $ 35,604 | $ 33,029 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Accounting Policies [Abstract] | |||
Beginning balance: Accumulated other comprehensive loss (net of tax of $4,525, $3,361, and $2,987 , respectively) | $ (17,022) | $ (12,642) | $ (11,221) |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments | 1,307 | (4,380) | (1,421) |
Reclassification of foreign currency translation gain to income | (354) | ||
Ending balance: Accumulated other comprehensive loss (net of tax of $4,304, $34,525, and $3,361, respectively) | $ (16,069) | $ (17,022) | $ (12,642) |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Accounting Policies [Abstract] | ||||
Accumulated other comprehensive loss, tax | $ 4,271 | $ 4,525 | $ 3,361 | $ 2,987 |
Foreign currency translations adjustment, tax | (348) | 1,164 | 374 | |
Reclassification of foreign currency translation gain to income, tax | $ 94 | $ 0 | $ 0 |
Summary of Significant Accou_12
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 | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Accounting Policies [Abstract] | |||
Net Income (Loss) | $ (130,684) | $ (12,530) | $ 33,369 |
Basic weighted average shares outstanding | 31,970 | 33,108 | 32,929 |
Dilutive impact of stock awards | 0 | 0 | 752 |
Diluted weighted average shares outstanding | 31,970 | 33,108 | 33,681 |
Basic (loss) earnings per share | $ (4.09) | $ (0.38) | $ 1.01 |
Diluted (loss) earnings per share | $ (4.09) | $ (0.38) | $ 0.99 |
Anti-dilutive shares excluded from diluted earnings (loss) per common share calculation | 1,021 | 1,186 | 93 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 29, 2023 USD ($) | Jun. 22, 2023 | Jun. 21, 2023 | May 12, 2023 | May 11, 2023 | Feb. 02, 2024 USD ($) | Jan. 27, 2023 USD ($) | |
Line Of Credit Facility [Line Items] | |||||||
Loss on extiguishment of debt | $ (6,666,000) | ||||||
ABL Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 275,000,000 | $ 275,000,000 | |||||
Line of credit facility, available to borrow of facility limit | 275,000,000 | ||||||
Line of credit | $ 0 | 100,000,000 | |||||
ABL Facility | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maturity date | Jul. 29, 2026 | ||||||
ABL Facility | Letter of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 70,000,000 | ||||||
ABL Facility | Secured Debt | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit | $ 0 | ||||||
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 | Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
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 | 0.10% | ||||||
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% | ||||||
ABL Facility | Secured Debt | One Month Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 1% | ||||||
Term Loan Facility | Secured Debt | One Month Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.11448% | ||||||
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% | ||||||
Current Term Loan Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Secured debt | $ 260,000,000 | $ 260,000,000 | |||||
Amount of original issue discount | 7,800,000 | ||||||
Debt origination fees | $ 2,900,000 | ||||||
Percentage of original issue discount | 3% | ||||||
Current Term Loan Facility | Fortress Credit Corp | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, amortization rate | 1.25% | ||||||
Current Term Loan Facility | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maturity date | Dec. 29, 2028 | ||||||
Current Term Loan Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 2% | ||||||
Current Term Loan Facility | Secured Debt | Fortress Credit Corp | |||||||
Line Of Credit Facility [Line Items] | |||||||
Prepayment premium on or before December 29, 2024 | 3% | ||||||
Prepayment premium between December 30, 2024 and December 29, 2025 | 2% | ||||||
Prepayment premium between December 30, 2025 and December 29, 2026 | 1% | ||||||
Prepayment premium between December 30, 2026 and December 29, 2027 | 0.50% | ||||||
Current 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% | ||||||
Current 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% | ||||||
Current Term Loan Facility | 8.25% Interest Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 8.25% | ||||||
Annual leverage ratio | 275% | ||||||
Current Term Loan Facility | 8.00% Interest Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 8% | ||||||
Current Term Loan Facility | 8.00% Interest Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 225% | ||||||
Current Term Loan Facility | 8.00% Interest Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 275% | ||||||
Current Term Loan Facility | 7.75% Interest Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 7.75% | ||||||
Current Term Loan Facility | 7.75% Interest Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 225% | ||||||
Current Term Loan Facility | 7.25% Interest Rate | Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 7.25% | ||||||
Current Term Loan Facility | 7.25% Interest Rate | Base Rate | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 275% | ||||||
Current Term Loan Facility | 7.00% Interest Rate | Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 7% | ||||||
Current Term Loan Facility | 7.00% Interest Rate | Base Rate | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 225% | ||||||
Current Term Loan Facility | 7.00% Interest Rate | Base Rate | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 275% | ||||||
Current Term Loan Facility | 6.75% Interest Rate | Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 6.75% | ||||||
Current Term Loan Facility | 6.75% Interest Rate | Base Rate | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 225% | ||||||
Former Term Loan Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Percentage of repayment transaction subject to premium | 1% | ||||||
Repayment amount subject to premium | $ 2,300,000 | ||||||
Unamortized original issue discount and debt issuance costs | 4,400,000 | ||||||
Loss on extiguishment of debt | $ (6,700,000) | ||||||
Secured debt | $ 244,063,000 | ||||||
Former Term Loan Facility | Secured Debt | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Federal funds rate | 0% | 0% | |||||
Former Term Loan Facility | Secured Debt | One Month Adjusted Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 1% | ||||||
Former Term Loan Facility | Secured Debt | Alternate Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 8.75% | 8.75% | |||||
Former Term Loan Facility | Secured Debt | Federal Funds Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.50% | 0.50% | |||||
Former Term Loan Facility | Secured Debt | One Month LIBOR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 1% | ||||||
Former Term Loan Facility | Secured Debt | London Interbank Offered Rate (LIBOR1) [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 1% | 9.75% | |||||
Minimum LIBOR rate | 1% | ||||||
Former Term Loan Facility | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 9.75% |
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 | Feb. 02, 2024 | |
Line Of Credit Facility [Line Items] | ||
ABL Facility maximum borrowing | $ 275,000,000 | $ 275,000,000 |
Borrowing base | 274,354,000 | 176,311,000 |
Less: Outstanding borrowings | 100,000,000 | 0 |
Letters of Credit Outstanding, Amount, Total | 10,557,000 | 9,070,000 |
Utilization of ABL Facility at end of period | 110,557,000 | 9,070,000 |
Borrowing availability under ABL Facility | $ 163,797,000 | $ 167,241,000 |
Interest Rate | 6.27% |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long Term Debt (Details) - USD ($) $ in Thousands | Feb. 02, 2024 | Dec. 29, 2023 | Jan. 27, 2023 |
Line Of Credit Facility [Line Items] | |||
Less: Current portion of long-term debt | $ 13,000 | $ 13,750 | |
Less: Unamortized debt issuance costs | 10,830 | 6,807 | |
Long-term debt, net | 236,170 | 223,506 | |
Former Term Loan Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured debt | $ 244,063 | ||
Debt instrument, interest rate, stated percentage | 14.13% | ||
Current Term Loan Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured debt | $ 260,000 | $ 260,000 | |
Debt instrument, interest rate, stated percentage | 13.70% |
Debt - Schedule of Aggregate Ma
Debt - Schedule of Aggregate Maturities (Details) - Secured Debt $ in Thousands | Feb. 02, 2024 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 13,000 |
2025 | 13,000 |
2026 | 13,000 |
2027 | 13,000 |
2028 | 208,000 |
Long Term Debt | $ 260,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Leases [Abstract] | |||
Operating lease expense | $ 6,340 | $ 7,466 | $ 8,273 |
Variable lease expense | 2,572 | 2,714 | 2,312 |
Total lease expense | $ 8,912 | $ 10,180 | $ 10,585 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Feb. 02, 2024 | Jan. 27, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 23,438 | $ 30,325 |
Lease liability - current | 6,024 | 5,414 |
Lease liability - long-term | $ 22,952 | $ 31,095 |
Weighted average remaining lease term in years | 5 years 8 months 12 days | 6 years 7 months 6 days |
Weighted average discount rate | 6.62% | 6.36% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Leases [Abstract] | |||
Operating cash outflows from operating leases | $ 8,060 | $ 9,154 | $ 10,509 |
Operating lease right-of-use-assets (reversal) obtained in exchange for lease liabilities | $ (2,236) | $ 4,440 | $ 1,409 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Feb. 02, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 7,682 |
2025 | 5,671 |
2026 | 5,372 |
2027 | 5,212 |
2028 | 4,462 |
Thereafter | 6,552 |
Total operating lease payments | 34,951 |
Less imputed interest | 5,975 |
Present value of lease liabilities | $ 28,976 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target shares earned | 100% | |
Adjustment percentage of earned shares, overall cap | 200% | |
Modifier limitationin event of TSR negative | 100% | |
Options awards expiration period | 10 years | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target shares earned | 50% | |
Adjustment percentage of earned shares | 75% | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target shares earned | 200% | |
Adjustment percentage of earned shares | 125% | |
Deferred Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Compensation expense not yet recognized | $ 6.2 | |
Compensation expense not yet recognized, recognition period | 2 years 1 month 6 days | |
Fair value of awards, vested | $ 5.5 | $ 5.7 |
Performance Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Compensation expense not yet recognized, recognition period | 2 years 2 months 12 days | |
Performance awards period considered | 3 years | |
Compensation expense not yet recognized | $ 2.2 | |
Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options awards expiration period | 10 years | |
Compensation expense not yet recognized, recognition period | 1 year 9 months 18 days | |
Compensation expense not yet recognized | $ 0.7 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 3,827 | $ 3,753 | $ 10,156 | |
Deferred Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 3,491 | 5,744 | 5,683 | |
Performance Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | [1] | (87) | (2,090) | 4,370 |
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 423 | $ 99 | $ 103 | |
[1] Net credit expense for Fiscal 2023 and Fiscal 2022 includes a reduction of the accrual for Performance Awards based on actual and projected results relative to performance measures and forfeitures. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Deferred Awards Activity (Details) - Deferred Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Awards at beginning of year | 906 | 913 | 1,093 |
Number of Shares, Granted | 844 | 503 | 247 |
Number of Shares, Vested | (449) | (398) | (401) |
Number of Shares, Forfeited | (342) | (112) | (26) |
Number of Shares, Awards at end of year | 959 | 906 | 913 |
Weighted Average Grant Date Fair Value, Awards at beginning of year | $ 16.46 | $ 14.6 | $ 10.86 |
Weighted Average Grant Date Fair Value, Granted | 8.53 | 18.09 | 29.9 |
Weighted Average Grant Date Fair Value, Vested | 12.21 | 14.14 | 13.89 |
Weighted Average Grant Date Fair Value, Forfeited | 16.53 | 16.94 | 13.46 |
Weighted Average Grant Date Fair Value, Awards at end of year | $ 11.44 | $ 16.46 | $ 14.6 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Awards Activity (Details) - Performance Awards - $ / shares | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Awards at beginning of year | 355,000 | 436,000 | 393,000 |
Number of Shares, Granted | 567,000 | 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 | (315,000) | (59,000) | |
Number of Shares, Awards at end of year | 607,000 | 355,000 | 436,000 |
Weighted Average Grant Date Fair Value, Awards at beginning of year | $ 24.39 | $ 21.15 | $ 18.32 |
Weighted Average Grant Date Fair Value, Granted | 9.74 | 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 | 21.9 | |
Weighted Average Grant Date Fair Value, Forfeited | 19.68 | 24.39 | |
Weighted Average Grant Date Fair Value, Awards at end of year | $ 13.14 | $ 24.39 | $ 21.15 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Grant Date Fair Value of Award Granted (Details) - $ / shares | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | ||
Performance Awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk-free interest rate | [1] | 4.46% | |
Expected dividend yield | 0% | ||
Expected volatility | [2] | 78.04% | |
Expected term (in years) | [3] | 2 years 7 months 17 days | |
Grant date fair value per share | $ 9.74 | ||
Employee Stock Option | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
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 | ||
[1] The risk-free interest is based on the continuously compounded yield on a zero-coupon U.S. Treasury STRIPS as of the grant date for a period equal to the expected term. 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 performance award. The expected term (in years) of the performance award represents the estimated period of time from the grant date to the end of the performance period. |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Changes in Outstanding Options Awards (Details) - Option Awards - $ / shares | 12 Months Ended | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Option Awards, Outstanding at beginning of year | 511,000 | 343,000 |
Option Awards, Granted | 0 | 168,000 |
Option Awards, Vested | 0 | |
Option Awards, Exercised | 0 | |
Option Awards, Forfeited | 0 | |
Option Awards, Outstanding at end of year | 511,000 | 511,000 |
Weighted Average Exercise Price per Share, Outstanding at beginning of year | $ 16.08 | $ 18.66 |
Weighted Average Exercise Price per Share, Granted | 0 | 10.81 |
Weighted Average Exercise Price per Share, Vested | 0 | |
Weighted Average Exercise Price per Share, Exercised | 0 | |
Weighted Average Exercise Price per Share, Forfeited | 0 | |
Weighted Average Exercise Price per Share, Outstanding at end of year | $ 16.08 | $ 16.08 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Information about Option Awards Vested and Expected to Vest (Details) - Employee Stock Option | 12 Months Ended |
Feb. 02, 2024 $ / 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 | 3 years 3 months 18 days |
Weighted Average Exercise Price, Option Awards vested and expected to vest | $ / shares | $ 16.08 |
Option Awards, Option Awards exercisable | shares | 385,000 |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest, Option Awards exercisable | 1 year 6 months |
Weighted Average Exercise Price, Option Awards exercisable | $ / shares | $ 17.8 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Mar. 15, 2024 | Jun. 28, 2022 | Feb. 02, 2024 | Jan. 27, 2023 | |
Equity Class of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | $ (11,986,000) | $ (8,463,000) | ||
Retained Earnings | ||||
Equity Class of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | (798,000) | |||
Share Repurchase Program | ||||
Equity Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 25,000,000 | |||
Stock repurchase program expiration date | Mar. 31, 2026 | |||
Purchases and retirement of common stock | 11,872,000 | 8,447,000 | ||
2022 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 repurchased, value | 20,300,000 | |||
2022 Share Repurchase Program | Retained Earnings | ||||
Equity Class of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | $ 0 | $ 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 | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Equity Class of Treasury Stock [Line Items] | ||
Total cost | $ (11,986) | $ (8,463) |
Share Repurchase Program | ||
Equity Class of Treasury Stock [Line Items] | ||
Number of shares repurchased | 1,487 | 796 |
Total cost | $ 11,872 | $ 8,447 |
Average per share cost | $ 7.98 | $ 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 | Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 |
Other Liabilities, Current [Abstract] | |||
Deferred gift card revenue | $ 35,604 | $ 33,029 | $ 33,070 |
Accrued employee compensation and benefits | 28,449 | 18,125 | |
Reserve for sales returns and allowances | 21,560 | 25,030 | |
Accrued property, sales and other taxes | 8,795 | 9,780 | |
Deferred revenue | 4,314 | 7,484 | |
Accrued interest | 1,994 | 4,456 | |
Other | 8,256 | 8,852 | |
Total accrued expenses and other current liabilities | $ 108,972 | $ 106,756 |
Lands' End Japan Closure - Summ
Lands' End Japan Closure - Summary of Closing Costs of Lands' End Japan Recognized in Other Operating Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | ||
Restructuring and Related Activities [Abstract] | |||
Employee severance and benefit costs | [1] | $ 25 | $ 1,795 |
Early termination and restoration costs of leased facilities | (16) | 744 | |
Contract cancellation and other costs | 259 | 448 | |
Total closing costs | $ 268 | $ 2,987 | |
[1] For fiscal year ending January 27, 2023 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) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | ||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance and benefit costs | [1] | $ 25 | $ 1,795 |
Compensation-Related Accrual | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance and benefit costs | $ 1,000 | ||
[1] For fiscal year ending January 27, 2023 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) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2024 | Jan. 27, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $ 1,556 | |
Estimated costs (reductions) payable in cash | 268 | $ 3,908 |
Cash payments | (1,748) | (2,836) |
Foreign currency translation | (33) | 484 |
Ending Balance | 43 | 1,556 |
Employee Severance and Benefit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 1,067 | |
Estimated costs (reductions) payable in cash | 25 | 2,812 |
Cash payments | (1,050) | (2,076) |
Foreign currency translation | (14) | 331 |
Ending Balance | 28 | 1,067 |
Leased Facilities Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 472 | |
Estimated costs (reductions) payable in cash | (16) | 749 |
Cash payments | (438) | (381) |
Foreign currency translation | (18) | 104 |
Ending Balance | 472 | |
Other Closing Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 17 | |
Estimated costs (reductions) payable in cash | 259 | 347 |
Cash payments | (260) | (379) |
Foreign currency translation | (1) | 49 |
Ending Balance | $ 15 | $ 17 |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Assets and Liabilities - Additional Information (Details) - USD ($) | Feb. 02, 2024 | Jan. 27, 2023 |
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 | $ 2,000,000 | $ 1,800,000 |
Fair Value Measurements of Fi_4
Fair Value Measurements of Financial Assets and Liabilities - Carrying Values and Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Feb. 02, 2024 | Jan. 27, 2023 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 260,000 | $ 244,063 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 258,139 | $ 241,728 |
Goodwill and Indefinite Lived_3
Goodwill and Indefinite Lived Intangible Assets - Summary of Goodwill and Intangible Asset Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Gross amount | $ 110,000 | $ 110,000 | $ 110,000 |
Goodwill, Accumulated impairment losses | (110,000) | (3,300) | (3,300) |
Goodwill, Carrying Value | 0 | 106,700 | $ 106,700 |
Goodwill, Impairment loss | $ 106,700 | $ 0 |
Goodwill and Indefinite Lived_4
Goodwill and Indefinite Lived Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible asset net, carrying value | $ 257,000,000 | $ 257,000,000 | $ 257,000,000 |
Goodwill impairment | 106,700,000 | ||
Trade Names | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Impairment of indefinite intangible asset excluding goodwill | 0 | $ 0 | $ 0 |
Outfitters | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill impairment | 36,300,000 | ||
US eCommerce | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill impairment | $ 70,400,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
(Loss) income before income taxes | |||
United States | $ (126,745) | $ 4,646 | $ 52,963 |
Foreign | (5,072) | (19,325) | (6,994) |
(Loss) income before income taxes | $ (131,817) | $ (14,679) | $ 45,969 |
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 | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Income Tax Expense (Benefit), Continuing Operations, by Jurisdiction [Abstract] | |||
United States | $ (1,482) | $ (3,258) | $ 12,215 |
Foreign | 349 | 1,109 | 385 |
Total (benefit) provision | (1,133) | (2,149) | 12,600 |
Current: | |||
Federal | (3,092) | (3,928) | 11,370 |
State | (192) | (273) | 1,627 |
Foreign | 338 | 1,125 | 385 |
Total current | (2,946) | (3,076) | 13,382 |
Deferred: | |||
Federal | (316) | 682 | (1,426) |
State | 2,118 | 261 | 644 |
Foreign | 11 | (16) | 0 |
Total deferred | 1,813 | 927 | (782) |
Total (benefit) provision | $ (1,133) | $ (2,149) | $ 12,600 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Effective Income Tax Rate (Details) | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | (1.10%) | 0.10% | 3.90% |
Foreign differential | 2.10% | 27.20% | (5.20%) |
Permanent differences | (0.80%) | (3.40%) | 1.90% |
Uncertain tax benefits | 0.10% | 1.10% | 1.10% |
Change in foreign valuation allowance | (2.20%) | (32.40%) | 4.90% |
Goodwill impairment | (17.00%) | 0% | 0% |
Other, net | (1.20%) | 1% | (0.20%) |
Total | 0.90% | 14.60% | 27.40% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 |
Deferred tax assets | |||
Deferred revenue | $ 7,388 | $ 5,946 | $ 6,528 |
Legal accruals | 1,418 | 2,053 | 2,461 |
Deferred compensation | 6,100 | 10,246 | 18,328 |
Deferred interest | 640 | 10,011 | 0 |
Reserve for returns | 2,867 | 2,938 | 2,958 |
Inventory | 4,510 | 4,303 | 3,730 |
CTA investment in foreign subsidiaries | 4,271 | 4,525 | 3,361 |
Operating lease liabilities | 7,017 | 8,112 | 8,677 |
Other | 1,369 | 1,980 | 2,402 |
Net operating loss carryforward | 26,544 | 11,057 | 5,211 |
Total deferred tax assets | 62,124 | 61,171 | 53,656 |
Less valuation allowance | (16,292) | (11,207) | (6,009) |
Net deferred tax assets | 45,832 | 49,964 | 47,647 |
Deferred tax liabilities | |||
Intangible assets | 61,785 | 61,715 | 62,295 |
LIFO reserve | 19,137 | 21,263 | 18,118 |
Property and equipment | 5,662 | 4,461 | 4,396 |
Operating lease right-of-use assets | 5,709 | 6,670 | 7,089 |
Catalog advertising | 1,559 | 1,808 | 1,940 |
Total deferred tax liabilities | 93,852 | 95,917 | 93,838 |
Net deferred tax liability | $ 48,020 | $ 45,953 | $ 46,191 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | Jan. 29, 2021 | |
Income Tax Examination [Line Items] | ||||
Unrecognized tax benefits | $ 1,141 | $ 1,297 | $ 1,477 | $ 1,012 |
Unrecognized tax benefits that would impact effective tax rate | $ 1,000 | |||
Tax years remain open for examination | 2020 2021 2022 2023 | |||
Amount of interest and penalties recognized | $ 600 | 600 | ||
Income tax examination, penalties and interest accrued, net of tax benefit | 500 | $ 500 | ||
Federal Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Operating loss Carryforwards | 125,200 | |||
Deferred tax assets, net | 14,400 | |||
State and Local Jurisdiction | ||||
Income Tax Examination [Line Items] | ||||
Operating loss Carryforwards | 125,200 | |||
Deferred tax assets, net | 14,400 | |||
Foreign Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Operating loss Carryforwards | 41,900 | |||
Deferred tax assets, net | $ 12,100 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Income Tax Disclosure [Abstract] | |||
Gross UTBs balance at beginning of period | $ 1,297 | $ 1,477 | $ 1,012 |
Tax positions related to the prior periods - gross (decreases) increases | (156) | (180) | 539 |
Settlements | 0 | 0 | (74) |
Gross UTBs balance at end of period | $ 1,141 | $ 1,297 | $ 1,477 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Feb. 02, 2024 Country Channel 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 | |||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | ||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,472,508 | $ 1,555,429 | $ 1,636,624 | |
US eCommerce | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 930,314 | $ 955,752 | $ 1,027,138 | |
Percentage of net revenue | 63.20% | 61.40% | 62.80% | |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | [1] | $ 112,855 | $ 166,627 | $ 220,997 |
Percentage of net revenue | [1] | 7.70% | 10.70% | 13.50% |
Outfitters | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 269,943 | $ 265,898 | $ 254,191 | |
Percentage of net revenue | 18.30% | 17.10% | 15.50% | |
Third Party | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 111,826 | $ 118,996 | $ 86,517 | |
Percentage of net revenue | 7.60% | 7.70% | 5.30% | |
Retail | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 47,570 | $ 48,156 | $ 47,781 | |
Percentage of net revenue | 3.20% | 3.10% | 2.90% | |
[1] Fiscal 2022 and Fiscal 2021 includes Net revenue of $ 32.7 million and $ 43.3 million, respectively, from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure . |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Net Revenue by Distribution Channel (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 1,472,508 | $ 1,555,429 | $ 1,636,624 |
Japan eCommerce | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 32,700 | $ 43,300 |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Segment and Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | ||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,472,508 | $ 1,555,429 | $ 1,636,624 | |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,342,366 | $ 1,368,518 | $ 1,393,402 | |
Percentage of net revenue | 91.20% | 88% | 85.10% | |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 114,778 | $ 135,878 | $ 179,302 | |
Percentage of net revenue | 7.80% | 8.70% | 11% | |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | [1] | $ 569 | $ 33,451 | $ 44,383 |
Percentage of net revenue | [1] | 0% | 2.20% | 2.70% |
Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 14,795 | $ 17,582 | $ 19,537 | |
Percentage of net revenue | 1% | 1.10% | 1.20% | |
[1] Fiscal 2022 and Fiscal 2021 includes Net revenue of $ 32.7 million and $ 43.3 million, respectively, from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure . |
Segment Reporting - Summary o_4
Segment Reporting - Summary of Segment and Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 1,472,508 | $ 1,555,429 | $ 1,636,624 |
Japan eCommerce | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 32,700 | $ 43,300 |
Segment Reporting - Summary o_5
Segment Reporting - Summary of Property and Equipment Net by Geographical Location (Details) - USD ($) $ in Thousands | Feb. 02, 2024 | Jan. 27, 2023 | Jan. 28, 2022 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 118,033 | $ 127,638 | $ 129,791 |
United States | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 111,254 | 120,311 | 121,259 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 6,588 | 7,051 | 7,879 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 191 | $ 276 | $ 653 |