Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May 03, 2024 | Jun. 03, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | Lands’ End, Inc. | |
Document Type | 10-Q | |
Trading Symbol | LE | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 31,406,348 | |
Amendment Flag | false | |
Entity Central Index Key | 0000799288 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | May 03, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Income Statement [Abstract] | ||
Net revenue | $ 285,471 | $ 309,558 |
Cost of sales (exclusive of depreciation and amortization) | 146,491 | 171,621 |
Gross profit | 138,980 | 137,937 |
Selling and administrative | 127,401 | 118,514 |
Depreciation and amortization | 9,005 | 9,301 |
Other operating expense, net | 341 | 202 |
Operating income | 2,233 | 9,920 |
Interest expense | 10,336 | 12,283 |
Other (income), net | (88) | (187) |
Loss before income taxes | (8,015) | (2,176) |
Income tax benefit | (1,573) | (524) |
NET LOSS | $ (6,442) | $ (1,652) |
NET LOSS PER COMMON SHARE | ||
Basic: | $ (0.2) | $ (0.05) |
Diluted: | $ (0.2) | $ (0.05) |
Basic weighted average common shares outstanding | 31,439 | 32,443 |
Diluted weighted average common shares outstanding | 31,439 | 32,443 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (6,442) | $ (1,652) |
Other comprehensive (loss) income, net of tax, foreign currency translation adjustments | (513) | 81 |
COMPREHENSIVE LOSS | $ (6,955) | $ (1,571) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 03, 2024 | Feb. 02, 2024 | Apr. 28, 2023 |
Current assets | |||
Cash and cash equivalents | $ 27,350 | $ 25,314 | $ 7,332 |
Restricted cash | 2,489 | 1,976 | 2,149 |
Accounts receivable, net | 34,664 | 35,295 | 38,759 |
Inventories, net | 288,629 | 301,724 | 376,062 |
Prepaid expenses and other current assets | 51,889 | 45,951 | 45,743 |
Total current assets | 405,021 | 410,260 | 470,045 |
Property and equipment, net | 113,286 | 118,033 | 126,397 |
Operating lease right-of-use asset | 22,286 | 23,438 | 31,878 |
Goodwill | 0 | 106,700 | |
Intangible asset | 257,000 | 257,000 | 257,000 |
Other assets | 2,514 | 2,748 | 3,174 |
TOTAL ASSETS | 800,107 | 811,479 | 995,194 |
Current liabilities | |||
Current portion of long-term debt | 13,000 | 13,000 | 13,750 |
Accounts payable | 108,287 | 131,922 | 110,097 |
Lease liability – current | 5,628 | 6,024 | 5,533 |
Accrued expenses and other current liabilities | 92,181 | 108,972 | 88,216 |
Total current liabilities | 219,096 | 259,918 | 217,596 |
Long-term borrowings under ABL Facility | 40,000 | 0 | 100,000 |
Long-term debt, net | 233,087 | 236,170 | 220,786 |
Lease liability – long-term | 21,873 | 22,952 | 32,335 |
Deferred tax liabilities | 48,620 | 48,020 | 45,863 |
Other liabilities | 2,830 | 2,826 | 3,330 |
TOTAL LIABILITIES | 565,506 | 569,886 | 619,910 |
Commitments and contingencies | |||
STOCKHOLDERS’ EQUITY | |||
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 31,407, 32,460 and 31,433, respectively | 314 | 315 | 325 |
Additional paid-in capital | 356,871 | 356,764 | 362,285 |
(Accumulated deficit) Retained earnings | (106,002) | (99,417) | 29,615 |
Accumulated other comprehensive loss | (16,582) | (16,069) | (16,941) |
TOTAL STOCKHOLDERS’ EQUITY | 234,601 | 241,593 | 375,284 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 800,107 | $ 811,479 | $ 995,194 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 03, 2024 | Feb. 02, 2024 | Apr. 28, 2023 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 480,000,000 | 480,000,000 | 480,000,000 |
Common stock, shares issued | 31,407,000 | 31,433,000 | 32,460,000 |
Common stock, shares outstanding | 31,407,000 | 31,433,000 | 32,460,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (6,442) | $ (1,652) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 9,005 | 9,301 |
Amortization of debt issuance costs | 667 | 815 |
(Gain)/loss on disposal of property and equipment | (1) | 123 |
Stock-based compensation | 1,226 | 1,083 |
Deferred income taxes | 398 | (112) |
Other | (199) | (193) |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 553 | 6,244 |
Inventories, net | 12,762 | 49,604 |
Accounts payable | (21,257) | (57,050) |
Other operating assets | (5,989) | (335) |
Other operating liabilities | (16,538) | (18,583) |
Net cash used in operating activities | (25,815) | (10,755) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Sales of property and equipment | 5 | |
Purchases of property and equipment | (6,736) | (12,384) |
Net cash used in investing activities | (6,731) | (12,384) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings under ABL Facility | 49,000 | 83,000 |
Payments of borrowings under ABL Facility | (9,000) | (83,000) |
Payments on term loan | (3,250) | (3,438) |
Payments of debt issuance costs | (528) | |
Payments for taxes related to net share settlement of equity awards | (249) | (1,199) |
Purchases and retirement of common stock | (1,014) | (3,781) |
Net cash provided by (used in) financing activities | 34,959 | (8,418) |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 136 | (353) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 2,549 | (31,910) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 27,290 | 41,391 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 29,839 | 9,481 |
SUPPLEMENTAL CASH FLOW DATA | ||
Unpaid liability to acquire property and equipment | 1,480 | 5,738 |
Income taxes paid | 340 | 1,315 |
Interest paid | $ 10,983 | 13,164 |
Operating lease right-of-use-assets obtained in exchange for lease liabilities | $ 2,539 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at Jan. 27, 2023 | $ 380,752 | $ 326 | $ 366,181 | $ 31,267 | $ (17,022) |
Balance, shares at Jan. 27, 2023 | 32,626 | ||||
Net loss | (1,652) | (1,652) | |||
Cumulative translation adjustment, net of tax | 81 | 81 | |||
Stock-based compensation expense | 1,083 | 1,083 | |||
Vesting of restricted shares | $ 3 | (3) | |||
Vesting of restricted shares, shares | 408 | ||||
Common stock withheld related to net share settlement of equity awards | (1,199) | (1,199) | |||
Common stock withheld related to net share settlement of equity awards, shares | (144) | ||||
Purchases and retirement of common stock | (3,781) | $ (4) | (3,777) | ||
Purchases and retirement of common stock, shares | (430) | ||||
Balance at Apr. 28, 2023 | 375,284 | $ 325 | 362,285 | 29,615 | (16,941) |
Balance, shares at Apr. 28, 2023 | 32,460 | ||||
Balance at Feb. 02, 2024 | 241,593 | $ 315 | 356,764 | (99,417) | (16,069) |
Balance, shares at Feb. 02, 2024 | 31,433 | ||||
Net loss | (6,442) | (6,442) | |||
Cumulative translation adjustment, net of tax | (513) | (513) | |||
Stock-based compensation expense | 1,226 | 1,226 | |||
Vesting of restricted shares, shares | 90 | ||||
Common stock withheld related to net share settlement of equity awards | (249) | (249) | |||
Common stock withheld related to net share settlement of equity awards, shares | (31) | ||||
Purchases and retirement of common stock | (1,014) | $ (1) | (870) | (143) | |
Purchases and retirement of common stock, shares | (85) | ||||
Balance at May. 03, 2024 | $ 234,601 | $ 314 | $ 356,871 | $ (106,002) | $ (16,582) |
Balance, shares at May. 03, 2024 | 31,407 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (6,442) | $ (1,652) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
May 03, 2024 | |
Trading Arrangements, by Individual | |
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 | 3 Months Ended |
May 03, 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. Lands’ End offers products online at www.landsend.com , through third-party distribution channels, our own Company Operated stores and third-party license agreements. Lands’ End also offers products to businesses and schools, for their employees and students, through the Outfitters distribution channel. Lands’ End is a classic American lifestyle brand that creates solutions for life’s every journey. References to www.landsend.com do not constitute incorporation by reference of the information at www.landsend.com , and such information is not part of this Quarterly Report on Form 10-Q or any other filings with the SEC, unless otherwise explicitly stated. Terms that are commonly used in the Company’s Notes to Condensed 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 Condensed 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 ended May 3, 2024 • First Quarter 2023 – The 13 weeks ended April 28, 2023 • Fiscal 2024 – The 52 weeks ending January 31, 2025 • Fiscal 2023 – The 53 weeks ended February 2, 2024 • 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 • 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 • SOFR – Secured Overnight Funding Rate • Target Shares – Number of restricted stock units awarded to a recipient which reflects the number of shares to be delivered based on achievement of target performance goals • Term Loan 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 Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of Lands’ End, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Lands’ End Annual Report on Form 10-K filed with the SEC on April 3, 2024. Corporate Restructuring During First Quarter 2024 and the second half of Fiscal 2023, the Company eliminated approximately 10 % of its positions in the corporate offices, including the Hong Kong sourcing office in Fiscal 2023. The Company incurred $ 0.3 million of total corporate restructuring costs, which includes severance and benefit costs, during First Quarter 2024 which was recorded in Other operating expense, net in the Condensed Consolidated Statements of Operations. As of May 3, 2024, approximately $ 1.2 million of the severance and benefit costs had yet to be paid and is included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements Not Yet Adopted | 3 Months Ended |
May 03, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements Not Yet Adopted | NOTE 2. 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 Condensed 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 Condensed Consolidated Financial Statement disclosures. In March 2024, FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements (“ASU 2024-02”) , which is intended to simplify the Codification and draw a distinction between authoritative and non-authoritative literature. ASU 2024-02 is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently assessing the impact of ASU 2024-02 on the Company’s Condensed Consolidated Financial Statements. |
Loss Per Share
Loss Per Share | 3 Months Ended |
May 03, 2024 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 3. 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 . Potentially dilutive securities for the diluted EPS calculations consist of non-vested equity shares of common stock and in-the-money outstanding options where the current stock price exceeds the option strike price. The following table summarizes the components of basic and diluted EPS: 13 Weeks Ended (in thousands, except per share amounts) May 3, 2024 April 28, 2023 Net loss $ ( 6,442 ) $ ( 1,652 ) Basic weighted average common shares outstanding 31,439 32,443 Dilutive impact of stock awards — — Diluted weighted average common shares outstanding 31,439 32,443 Loss per share Basic $ ( 0.20 ) $ ( 0.05 ) Diluted $ ( 0.20 ) $ ( 0.05 ) Anti-dilutive shares excluded from diluted loss per common share calculation 1,002 1,189 Stock awards are considered anti-dilutive based on the application of the treasury stock method or in the event of a net loss. |
Other Comprehensive Loss
Other Comprehensive Loss | 3 Months Ended |
May 03, 2024 | |
Equity [Abstract] | |
Other Comprehensive Loss | NOTE 4. OTHER COMPREHENSIVE 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. 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Beginning balance: Accumulated other comprehensive loss 4,271 and $ 4,525 , respectively) $ ( 16,069 ) $ ( 17,022 ) Other comprehensive (loss) income: Foreign currency translation adjustments (net of tax of ($ 203 ) and ($ 22 ), respectively) ( 513 ) 81 Ending balance: Accumulated other comprehensive loss 4,068 and $ 4,503 , respectively) $ ( 16,582 ) $ ( 16,941 ) No amounts were reclassified out of Accumulated other comprehensive loss during any of the periods presented. |
Debt
Debt | 3 Months Ended |
May 03, 2024 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 5. 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: May 3, 2024 April 28, 2023 February 2, 2024 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate ABL Facility limit $ 275,000 $ 275,000 $ 275,000 Borrowing Base 181,885 245,179 176,311 Outstanding borrowings 40,000 6.67 % 100,000 6.89 % — Outstanding letters of credit 8,069 9,095 9,070 ABL Facility utilization at end of period 48,069 109,095 9,070 ABL Facility borrowing availability $ 133,816 $ 136,084 $ 167,241 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 $ 3.2 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 Condensed Consolidated Statements of Operations. The Company’s long-term debt consisted of the following: May 3, 2024 April 28, 2023 February 2, 2024 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate Former Term Loan Facility $ — —% $ 240,625 14.77 % $ — —% Current Term Loan Facility 256,750 13.68 % — —% 260,000 13.70 % Less: Current portion of long-term debt 13,000 13,750 13,000 Less: Unamortized debt issuance costs 10,663 6,089 10,830 Long-term debt, net $ 233,087 $ 220,786 $ 236,170 Interest; Fees ABL Facility Effective with the Fourth Amendment to the ABL Facility executed May 12, 2023, the benchmark interest rate was changed from LIBOR to SOFR plus an adjustment of 0.10 % for all loans (“ABL Adjusted SOFR”). Loan interest rates are 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. 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 May 3, 2024 , the Company had $ 40.0 million 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) for 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 with the First Amendment to the Former Term Loan Facility executed June 22, 2023, the interest rate benchmark changed from LIBOR to Term Loan Adjusted SOFR. The annual interest rate 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 Loan Adjusted 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 , and 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. 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 also secured by a second priority security interest in the same collateral, with certain exceptions. The Current Term Loan Facility is also 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 also 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 May 3, 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 03, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 6. STOCK-BASED COMPENSATION The Company expenses the fair value of all stock awards over their requisite service period, ensuring that the amount of cumulative stock-based compensation expense recognized at any date is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company has elected to adjust stock-based compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize stock-based compensation expense on a straight-line basis for awards that only have a service requirement with multiple vest dates. The Company has granted the following types of stock awards to employees at management levels and above, each of which are granted under the Company’s stockholder approved stock plans, other than inducement grants outside of the Company’s stockholder approved stock plans in accordance with Nasdaq Listing Rule 5635(c)(4): • 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. • Performance Awards are in the form of restricted stock units and have, in addition to a service requirement, financial performance criteria and/or stock performance criteria that must be achieved for the awards to be earned. For the Performance Awards granted in Fiscal 2024, a portion have financial performance criteria and a portion have stock performance criteria. The Performance Awards granted in Fiscal 2023 are also 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. Certain Performance Awards granted in Fiscal 2024 vest up to 100 % of the specified number of shares, contingent upon the Company’s common stock achieving a specified average per share closing stock price over a specified number of trading days, and other Performance Awards granted in Fiscal 2024 vest based on financial performance criteria. For Performance Awards with financial performance criteria, 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 certain financial measures for the cumulative period comprised of three-consecutive fiscal years beginning with the fiscal year of the grant date. The Fiscal 2023 Performance Award 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. For Fiscal 2024 Performance Awards with stock performance criteria, the Target Shares earned can range from 0 % to 100 % based on the Company’s highest average per share common stock closing stock price measured over any 20 consecutive trading-day period for the cumulative period comprised of three-consecutive fiscal years beginning with the fiscal year of the grant date. 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 financial performance or stock price 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 prior to Fiscal 2023, as well as the portion of the Fiscal 2024 Performance Awards with financial performance criteria, are based on the closing price of the Company’s common stock on the grant date. For the portion of the Performance Awards granted in Fiscal 2024 with stock performance criteria and the Performance Awards granted in Fiscal 2023 with a relative TSR modifier, 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 u nless it becomes probable that the outcome will be significantly different, or the performance can be accurately measured. • 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 Condensed Consolidated Statements of Operations: 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Deferred awards $ 922 $ 979 Performance awards 200 — Option awards 104 104 Total stock-based compensation expense $ 1,226 $ 1,083 Deferred Awards The following table provides a summary of the Deferred Awards activity for the 13 weeks ended May 3, 2024: Deferred Awards (in thousands, except per share amounts) Number of Weighted Average Unvested Deferred Awards as of February 2, 2024 959 $ 11.44 Granted 305 11.32 Vested ( 90 ) 25.69 Forfeited or expired ( 45 ) 11.14 Unvested Deferred Awards as of May 3, 2024 1,129 $ 10.28 Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $ 8.0 million as of May 3, 2024, which is expected to be recognized ratably over a weighted average period of 2.3 years. The total fair value of Deferred Awards vested during the 13 weeks ended May 3, 2024 and April 28, 2023 was $ 2.3 million and $ 5.0 million, respectively. The Deferred Awards granted to employees during the 13 weeks ended May 3, 2024 vest over a period of three years . Performance Awards The following table provides a summary of the Performance Awards activity for the 13 weeks ended May 3, 2024: Performance Awards (in thousands, except per share amounts) Number of Weighted Average Unvested Performance Awards as of February 2, 2024 607 $ 13.14 Granted 264 9.68 Change in estimate - performance ( 57 ) 29.95 Vested — — Forfeited or expired ( 13 ) 12.87 Unvested Performance Awards as of May 3, 2024 801 $ 10.82 Total unrecognized stock-based compensation expense related to unvested Performance Awards was approximately $ 4.4 million as of May 3, 2024 which is expected to be recognized ratably over a weighted average period of 2.5 years. The Performance Awards granted to employees during the 13 weeks ended May 3, 2024 vest, if earned, after completion of the applicable three-year performance period. Option Awards The following table provides a summary of the Option Awards activity for the 13 weeks ended May 3, 2024: Option Awards (in thousands, except per share amounts) Number of Weighted Average Option Awards outstanding as of February 2, 2024 511 $ 16.08 Granted — — Exercised — — Forfeited — — Expired ( 294 ) 18.10 Option Awards outstanding as of May 3, 2024 217 $ 13.34 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 May 3, 2024: (in thousands, except contractual life and exercise price amounts) Option Awards Weighted Weighted Aggregate Intrinsic Value Option Awards vested and expected to vest 217 7.26 $ 13.34 $ 568 Option Awards exercisable 91 5.55 $ 16.84 $ 142 Total unrecognized stock-based compensation expense related to Option Awards was approximately $ 0.6 million as of May 3, 2024, which is expected to be recognized over a weighted average period of 1.6 years. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
May 03, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | NOTE 7. 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 purchases were 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. The 2022 Share Repurchase Program expired on February 2, 2024 . 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 (the “2024 Share Repurchase Program”). Under the 2024 Share Repurchase Program, the Company may repurchase its common stock through open market purchases, in privately negotiated transactions, or by other means in accordance with federal securities laws, including Rule 10b-18 of the Exchange Act. The amount and timing of purchases will be determined by the Company’s management depending upon market conditions and other factors and may be made pursuant to a Rule 10b5-1 trading plan. The 2024 Share Repurchase Program may be suspended or discontinued at any time. As of May 3, 2024 , additional purchases of up to $ 24.0 million could be made under the 2024 Share Repurchase Program. All repurchases are subject to compliance with the Current Term Loan Facility which imposes a per fiscal year limitation on share repurchases. The following table summarizes the Company’s share repurchases for First Quarter 2024 (under the 2024 Share Repurchase Program) and First Quarter 2023 (under the 2022 Share Repurchase Program): 13 Weeks Ended (Shares and $ in thousands except average per share cost) May 3, 2024 April 28, 2023 Number of shares repurchased 85 430 Total cost $ 1,013 $ 3,772 Average per share cost $ 11.88 $ 8.77 The Company retired all shares that were repurchased through the 2024 Share Repurchase Program and the 2022 Share Repurchase Program during the 13 weeks ended May 3, 2024 and April 28, 2023, respectively. 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 the shares retired during the 13 weeks ended May 3, 2024 and April 28, 2023 , $ 0.1 million and no amount, 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. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
May 03, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: (in thousands) May 3, 2024 April 28, 2023 February 2, 2024 Deferred gift card revenue $ 35,119 $ 34,222 $ 35,604 Accrued employee compensation and benefits 17,900 15,204 28,449 Reserve for sales returns and allowances 16,886 17,755 21,560 Deferred revenue 9,340 6,019 4,314 Accrued property, sales and other taxes 7,904 7,945 8,795 Other 5,032 7,071 10,250 Total Accrued expenses and other current liabilities $ 92,181 $ 88,216 $ 108,972 |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Assets and Liabilities | 3 Months Ended |
May 03, 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 Condensed 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 $ 2.5 million, $ 2.1 million and $ 2.0 million as of May 3, 2024, April 28, 2023 and February 2, 2024, respectively. Carrying amounts and fair values of long-term debt, including current portion, in the Condensed Consolidated Balance Sheets are as follows: May 3, 2024 April 28, 2023 February 2, 2024 (in thousands) Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion $ 256,750 $ 257,270 $ 240,625 $ 227,109 $ 260,000 $ 258,139 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 May 3, 2024, April 28, 2023 and February 2, 2024 . |
Income Taxes
Income Taxes | 3 Months Ended |
May 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES Provision for Income Taxes At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period. The Company recorded a tax benefit at an overall effective tax rate of 19.6 % and 24.1 % for the 13 weeks ended May 3, 2024, and April 28, 2023, respectively. The overall effective tax rates for the 13 weeks ended May 3, 2024, and April 28, 2023 vary from the U.S. federal statutory rate of 21 % as a result of state taxes, non-deductible expenses, and the impact of stock-based compensation adjustments. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 03, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. 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 | 3 Months Ended |
May 03, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 12. SEGMENT REPORTING For the 13 weeks ended May 3, 2024, the Company’s operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party and Retail. The Company determined that each of the operating segments have similar economic and other qualitative characteristics, thus the results of the operating segments are aggregated into one external reportable segment. Lands’ 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 the Company’s 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. In addition, Third Party generates revenue from licensing agreements. • Retail sells products through the Company Operated stores. Net revenue is presented by distribution channel in the following tables: 13 Weeks Ended % of Net 13 Weeks Ended % of Net (in thousands) May 3, 2024 Revenue April 28, 2023 Revenue Net revenue: U.S. eCommerce $ 170,532 59.7 % $ 177,702 57.4 % International 24,968 8.8 % 25,392 8.2 % Outfitters 42,677 15.0 % 73,969 23.9 % Third Party 37,454 13.1 % 22,989 7.4 % Retail 9,840 3.4 % 9,506 3.1 % Total Net revenue $ 285,471 $ 309,558 |
Revenue
Revenue | 3 Months Ended |
May 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 13. REVENUE Net Revenue Product Sales 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. Revenue by distribution channel is presented in Note 12, Segment Reporting . Revenue by geographic location was: 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Net revenue: United States $ 257,507 $ 280,404 Europe 25,308 25,877 Other 2,656 3,277 Total Net revenue $ 285,471 $ 309,558 Licensing Agreements The Company generates royalty revenue from licensing the right to use its trademarks to third parties. The licensing agreements generally are exclusive to a product category, selling channel and/or geography, have terms in excess of one year, provide for annual guaranteed minimum royalties and, in most cases, include renewal options. In certain agreements, the licensee pays the Company a fulfillment fee for licensed product sold on the Company’s website and fulfilled from the Company’s distribution center. The trademark royalty revenue and fulfillment fee are included in Net revenue and reported in the Third Party distribution channel. See Note 12, Segment Reporting . In exchange for providing these rights, the license agreements require the licensees to pay the Company a trademark royalty based on net sales as defined in the license agreements. The Company recognizes sales-based royalty revenue at the later of (i) when the related sales of the licensed product occur, or (ii) when the performance obligation has been satisfied, as the Company expects the annual guaranteed minimums will be met, where such provisions exist. In certain agreements, the Company agreed to perform transitional activities, such as marketing costs, for the licensed products. The Company receives reimbursement for such costs which are recorded as a reduction of the related Selling and administrative expenses in the Condensed Consolidated Statements of Operations. The amount of these reimbursements was not material for the 13 weeks ended May 3, 2024. 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 Condensed 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 Condensed Consolidated Balance Sheets, and amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of May 3, 2024 is expected to be recognized in Net revenue in the fiscal quarter ending August 2, 2024, as products are delivered to customers. 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Deferred revenue beginning of period $ 4,314 $ 7,484 Deferred revenue recognized in period ( 4,100 ) ( 7,270 ) Revenue deferred in period 9,126 5,805 Deferred revenue end of period $ 9,340 $ 6,019 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 Condensed Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability and included within Accrued expenses and other current liabilities in the Condensed 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: 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Balance as of beginning of period $ 35,604 $ 33,029 Gift cards sold 15,056 15,616 Gift cards redeemed ( 14,193 ) ( 13,635 ) Gift card breakage ( 1,348 ) ( 788 ) Balance as of end of period $ 35,119 $ 34,222 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. Refund liabilities, primarily associated with estimated product returns, were $ 16.9 million, $ 17.8 million and $ 21.6 million as of May 3, 2024, April 28, 2023 and February 2, 2024 , respectively, and reported in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements Not Yet Adopted (Policies) | 3 Months Ended |
May 03, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
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 Condensed 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 Condensed Consolidated Financial Statement disclosures. In March 2024, FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements (“ASU 2024-02”) , which is intended to simplify the Codification and draw a distinction between authoritative and non-authoritative literature. ASU 2024-02 is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently assessing the impact of ASU 2024-02 on the Company’s Condensed Consolidated Financial Statements. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
May 03, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Basic and Diluted EPS | The following table summarizes the components of basic and diluted EPS: 13 Weeks Ended (in thousands, except per share amounts) May 3, 2024 April 28, 2023 Net loss $ ( 6,442 ) $ ( 1,652 ) Basic weighted average common shares outstanding 31,439 32,443 Dilutive impact of stock awards — — Diluted weighted average common shares outstanding 31,439 32,443 Loss per share Basic $ ( 0.20 ) $ ( 0.05 ) Diluted $ ( 0.20 ) $ ( 0.05 ) Anti-dilutive shares excluded from diluted loss per common share calculation 1,002 1,189 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 3 Months Ended |
May 03, 2024 | |
Equity [Abstract] | |
Schedule of Other Comprehensive 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. 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Beginning balance: Accumulated other comprehensive loss 4,271 and $ 4,525 , respectively) $ ( 16,069 ) $ ( 17,022 ) Other comprehensive (loss) income: Foreign currency translation adjustments (net of tax of ($ 203 ) and ($ 22 ), respectively) ( 513 ) 81 Ending balance: Accumulated other comprehensive loss 4,068 and $ 4,503 , respectively) $ ( 16,582 ) $ ( 16,941 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
May 03, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Company's Maximum Borrowing Availability Under ABL Facility | May 3, 2024 April 28, 2023 February 2, 2024 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate ABL Facility limit $ 275,000 $ 275,000 $ 275,000 Borrowing Base 181,885 245,179 176,311 Outstanding borrowings 40,000 6.67 % 100,000 6.89 % — Outstanding letters of credit 8,069 9,095 9,070 ABL Facility utilization at end of period 48,069 109,095 9,070 ABL Facility borrowing availability $ 133,816 $ 136,084 $ 167,241 |
Schedule of Company's Long Term Debt | The Company’s long-term debt consisted of the following: May 3, 2024 April 28, 2023 February 2, 2024 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate Former Term Loan Facility $ — —% $ 240,625 14.77 % $ — —% Current Term Loan Facility 256,750 13.68 % — —% 260,000 13.70 % Less: Current portion of long-term debt 13,000 13,750 13,000 Less: Unamortized debt issuance costs 10,663 6,089 10,830 Long-term debt, net $ 233,087 $ 220,786 $ 236,170 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 03, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
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 Condensed Consolidated Statements of Operations: 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Deferred awards $ 922 $ 979 Performance awards 200 — Option awards 104 104 Total stock-based compensation expense $ 1,226 $ 1,083 |
Summary of Deferred Awards Activity | The following table provides a summary of the Deferred Awards activity for the 13 weeks ended May 3, 2024: Deferred Awards (in thousands, except per share amounts) Number of Weighted Average Unvested Deferred Awards as of February 2, 2024 959 $ 11.44 Granted 305 11.32 Vested ( 90 ) 25.69 Forfeited or expired ( 45 ) 11.14 Unvested Deferred Awards as of May 3, 2024 1,129 $ 10.28 |
Summary of Performance Awards Activity | The following table provides a summary of the Performance Awards activity for the 13 weeks ended May 3, 2024: Performance Awards (in thousands, except per share amounts) Number of Weighted Average Unvested Performance Awards as of February 2, 2024 607 $ 13.14 Granted 264 9.68 Change in estimate - performance ( 57 ) 29.95 Vested — — Forfeited or expired ( 13 ) 12.87 Unvested Performance Awards as of May 3, 2024 801 $ 10.82 |
Summary of Changes in Outstanding Options Awards | The following table provides a summary of the Option Awards activity for the 13 weeks ended May 3, 2024: Option Awards (in thousands, except per share amounts) Number of Weighted Average Option Awards outstanding as of February 2, 2024 511 $ 16.08 Granted — — Exercised — — Forfeited — — Expired ( 294 ) 18.10 Option Awards outstanding as of May 3, 2024 217 $ 13.34 |
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 May 3, 2024: (in thousands, except contractual life and exercise price amounts) Option Awards Weighted Weighted Aggregate Intrinsic Value Option Awards vested and expected to vest 217 7.26 $ 13.34 $ 568 Option Awards exercisable 91 5.55 $ 16.84 $ 142 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
May 03, 2024 | |
Share Repurchase Program | |
Equity Class Of Treasury Stock [Line Items] | |
Summary of Share Repurchases | The following table summarizes the Company’s share repurchases for First Quarter 2024 (under the 2024 Share Repurchase Program) and First Quarter 2023 (under the 2022 Share Repurchase Program): 13 Weeks Ended (Shares and $ in thousands except average per share cost) May 3, 2024 April 28, 2023 Number of shares repurchased 85 430 Total cost $ 1,013 $ 3,772 Average per share cost $ 11.88 $ 8.77 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
May 03, 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) May 3, 2024 April 28, 2023 February 2, 2024 Deferred gift card revenue $ 35,119 $ 34,222 $ 35,604 Accrued employee compensation and benefits 17,900 15,204 28,449 Reserve for sales returns and allowances 16,886 17,755 21,560 Deferred revenue 9,340 6,019 4,314 Accrued property, sales and other taxes 7,904 7,945 8,795 Other 5,032 7,071 10,250 Total Accrued expenses and other current liabilities $ 92,181 $ 88,216 $ 108,972 |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Assets and Liabilities (Tables) | 3 Months Ended |
May 03, 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 Condensed Consolidated Balance Sheets are as follows: May 3, 2024 April 28, 2023 February 2, 2024 (in thousands) Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion $ 256,750 $ 257,270 $ 240,625 $ 227,109 $ 260,000 $ 258,139 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
May 03, 2024 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Distribution Channel | Net revenue is presented by distribution channel in the following tables: 13 Weeks Ended % of Net 13 Weeks Ended % of Net (in thousands) May 3, 2024 Revenue April 28, 2023 Revenue Net revenue: U.S. eCommerce $ 170,532 59.7 % $ 177,702 57.4 % International 24,968 8.8 % 25,392 8.2 % Outfitters 42,677 15.0 % 73,969 23.9 % Third Party 37,454 13.1 % 22,989 7.4 % Retail 9,840 3.4 % 9,506 3.1 % Total Net revenue $ 285,471 $ 309,558 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
May 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated of Revenue by Geographic Location | The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 12, Segment Reporting . Revenue by geographic location was: 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Net revenue: United States $ 257,507 $ 280,404 Europe 25,308 25,877 Other 2,656 3,277 Total Net revenue $ 285,471 $ 309,558 |
Summary of Deferred Revenue | 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 Condensed Consolidated Balance Sheets, and amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of May 3, 2024 is expected to be recognized in Net revenue in the fiscal quarter ending August 2, 2024, as products are delivered to customers. 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Deferred revenue beginning of period $ 4,314 $ 7,484 Deferred revenue recognized in period ( 4,100 ) ( 7,270 ) Revenue deferred in period 9,126 5,805 Deferred revenue end of period $ 9,340 $ 6,019 |
Reconciliation of Gift Card Contract Liability | The following table provides the reconciliation of the contract liability related to gift cards: 13 Weeks Ended (in thousands) May 3, 2024 April 28, 2023 Balance as of beginning of period $ 35,604 $ 33,029 Gift cards sold 15,056 15,616 Gift cards redeemed ( 14,193 ) ( 13,635 ) Gift card breakage ( 1,348 ) ( 788 ) Balance as of end of period $ 35,119 $ 34,222 |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 22, 2023 | May 03, 2024 | |
Unusual Risk or Uncertainty [Line Items] | ||
Severance and benefit costs yet to be paid | $ 1.2 | |
Corporate restructuring, percentage of reduced corporate positions | 10% | |
Term Loan Facility | Secured Debt | One Month Adjusted SOFR | ||
Unusual Risk or Uncertainty [Line Items] | ||
Spread on variable rate | 0.11448% | |
Term Loan Facility | Secured Debt | Three Month Adjusted SOFR | ||
Unusual Risk or Uncertainty [Line Items] | ||
Spread on variable rate | 0.26161% | |
Term Loan Facility | Secured Debt | Six Month Adjusted SOFR | ||
Unusual Risk or Uncertainty [Line Items] | ||
Spread on variable rate | 0.42826% | |
Other Operating Expense (Income) | ||
Unusual Risk or Uncertainty [Line Items] | ||
Corporate restructuring | $ 0.3 |
Loss Per Share - Schedule of Co
Loss Per Share - Schedule of Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (6,442) | $ (1,652) |
Basic weighted average common shares outstanding | 31,439,000 | 32,443,000 |
Diluted weighted average common shares outstanding | 31,439,000 | 32,443,000 |
Basic loss per share | $ (0.2) | $ (0.05) |
Diluted loss per share | $ (0.2) | $ (0.05) |
Anti-dilutive shares excluded from diluted loss per common share calculation | 1,002 | 1,189 |
Other Comprehensive Loss - Sche
Other Comprehensive Loss - Schedule of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Equity [Abstract] | ||
Beginning balance: Accumulated other comprehensive loss (net of tax of $4,271 and $4,525, respectively) | $ (16,069) | $ (17,022) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments (net of tax of $315, $518, $107 and $1,564 respectively) | (513) | 81 |
Ending balance: Accumulated other comprehensive loss (net of tax of $4,068 and $4,503, respectively) | $ (16,582) | $ (16,941) |
Other Comprehensive Loss - Sc_2
Other Comprehensive Loss - Schedule of Other Comprehensive Loss (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
May 03, 2024 | Apr. 28, 2023 | Feb. 02, 2024 | Jan. 27, 2023 | |
Equity [Abstract] | ||||
Accumulated other comprehensive loss, tax | $ 4,068 | $ 4,503 | $ 4,271 | $ 4,525 |
Foreign currency translations adjustments, tax | $ (203) | $ (22) |
Other Comprehensive Loss - Addi
Other Comprehensive Loss - Additional Information (Details) - USD ($) | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Equity [Abstract] | ||
Amounts reclassified from accumulated other comprehensive (loss) | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) | 3 Months Ended | ||||||
Dec. 29, 2023 USD ($) | Jun. 22, 2023 | May 12, 2023 | May 11, 2023 | May 03, 2024 USD ($) | Feb. 02, 2024 USD ($) | Apr. 28, 2023 USD ($) | |
ABL Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | ||||
Line of credit facility, available to borrow of facility limit | 275,000,000 | ||||||
Borrowing under facility | $ 40,000,000 | 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 facility, unused commitment fee percentage | 0.25% | ||||||
Borrowing under facility | $ 40,000,000 | ||||||
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 | 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 SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 1% | ||||||
ABL Facility | Secured Debt | Adjusted SOFR | |||||||
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% | ||||||
Term Loan Facility | Secured Debt | Federal Funds Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.50% | ||||||
Term Loan Facility | Secured Debt | One Month Adjusted SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.11448% | ||||||
Term Loan Facility | Secured Debt | Three Month Adjusted SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.26161% | ||||||
Term Loan Facility | Secured Debt | Six Month Adjusted SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.42826% | ||||||
Current Term Loan Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Secured debt | $ 260,000,000 | $ 256,750,000 | $ 260,000,000 | ||||
Debt origination fees | $ 3,200,000 | ||||||
Percentage of original issue discount | 3% | ||||||
Amount of original issue discount | $ 7,800,000 | ||||||
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 | SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 2% | ||||||
Current Term Loan Facility | 8.25% Interest Rate | SOFR | |||||||
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 | SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 8% | ||||||
Current Term Loan Facility | 8.00% Interest Rate | SOFR | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 225% | ||||||
Current Term Loan Facility | 8.00% Interest Rate | SOFR | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 275% | ||||||
Current Term Loan Facility | 7.75% Interest Rate | SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 7.75% | ||||||
Current Term Loan Facility | 7.75% Interest Rate | SOFR | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual leverage ratio | 225% | ||||||
Current Term Loan Facility | 7.25% Interset Rate | Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest charged based on leverage ratio | 7.25% | ||||||
Current Term Loan Facility | 7.25% Interset 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% | ||||||
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% | ||||||
Debt instrument 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% | ||||||
Former Term Loan Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Secured debt | $ 240,625,000 | ||||||
Former Term Loan Facility | Secured Debt | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Federal funds rate | 0% | ||||||
Former Term Loan Facility | Secured Debt | Federal Funds Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 0.50% | ||||||
Former Term Loan Facility | Secured Debt | Alternate Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 8.75% | ||||||
Former Term Loan Facility | Secured Debt | One Month Adjusted SOFR | |||||||
Line Of Credit Facility [Line Items] | |||||||
Spread on variable rate | 1% | ||||||
Former Term Loan Facility | Secured Debt | SOFR | |||||||
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 ($) | 3 Months Ended | ||
May 03, 2024 | Apr. 28, 2023 | Feb. 02, 2024 | |
Line Of Credit Facility [Line Items] | |||
ABL Facility maximum borrowing | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 |
Borrowing base | 181,885,000 | 245,179,000 | 176,311,000 |
Less: Outstanding borrowings | 40,000,000 | 100,000,000 | |
Less: Outstanding letters of credit | 8,069,000 | 9,095,000 | 9,070,000 |
Utilization of ABL Facility at end of period | 48,069,000 | 109,095,000 | 9,070,000 |
Borrowing availability under ABL Facility | $ 133,816,000 | $ 136,084,000 | $ 167,241,000 |
Interest Rate | 6.67% | 6.89% |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long Term Debt (Details) - USD ($) $ in Thousands | May 03, 2024 | Feb. 02, 2024 | Dec. 29, 2023 | Apr. 28, 2023 |
Line Of Credit Facility [Line Items] | ||||
Less: Current portion of long-term debt | $ 13,000 | $ 13,000 | $ 13,750 | |
Less: Unamortized debt issuance costs | 10,663 | 10,830 | 6,089 | |
Long-term debt, net | 233,087 | 236,170 | 220,786 | |
Former Term Loan Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Secured debt | $ 240,625 | |||
Debt instrument, interest rate, stated percentage | 14.77% | |||
Current Term Loan Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Secured debt | $ 256,750 | $ 260,000 | $ 260,000 | |
Debt instrument, interest rate, stated percentage | 13.68% | 13.70% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | Feb. 02, 2024 | |
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% | ||
Consecutive trading day the highest average per share common stock closing stock price measured | 20 days | ||
Performance grants | 100% | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Target shares earned | 50% | ||
Adjustment percentage of earned shares | 75% | ||
Performance awards with stock performance criteria target percentage earned | 0% | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Target shares earned | 200% | ||
Adjustment percentage of earned shares | 125% | ||
Performance awards with stock performance criteria target percentage earned | 100% | ||
Deferred Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Compensation expense not yet recognized | $ 8 | ||
Compensation expense not yet recognized, recognition period | 2 years 3 months 18 days | ||
Fair value of awards, vested | $ 2.3 | $ 5 | |
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 6 months | ||
Performance awards period considered | 3 years | ||
Compensation expense not yet recognized | $ 4.4 | ||
Option Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options awards expiration period | 10 years | ||
Compensation expense not yet recognized, recognition period | 1 year 7 months 6 days | ||
Compensation expense not yet recognized | $ 0.6 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 1,226 | $ 1,083 |
Deferred Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | 922 | 979 |
Performance Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | 200 | 0 |
Option Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 104 | $ 104 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Deferred Awards Activity (Details) - Deferred Awards shares in Thousands | 3 Months Ended |
May 03, 2024 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested awards at beginning of period | shares | 959 |
Number of Shares, Granted | shares | 305 |
Number of Shares, Vested | shares | (90) |
Number of Shares, Forfeited | shares | (45) |
Number of Shares, Unvested awards at end of period | shares | 1,129 |
Weighted Average Grant Date Fair Value, Unvested awards at beginning of period | $ / shares | $ 11.44 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 11.32 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 25.69 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 11.14 |
Weighted Average Grant Date Fair Value, Unvested awards at end of period | $ / shares | $ 10.28 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Awards Activity (Details) - Performance Awards shares in Thousands | 3 Months Ended |
May 03, 2024 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested awards at beginning of period | shares | 607 |
Number of Shares, Granted | shares | 264 |
Number of Shares, Change in estimate - performance | shares | (57) |
Number of Shares, Forfeited | shares | (13) |
Number of Shares, Unvested awards at end of period | shares | 801 |
Weighted Average Grant Date Fair Value, Unvested awards at beginning of period | $ / shares | $ 13.14 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.68 |
Weighted Average Grant Date Fair Value, Change in estimate - performance | $ / shares | 29.95 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 12.87 |
Weighted Average Grant Date Fair Value, Unvested awards at end of period | $ / shares | $ 10.82 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Changes in Outstanding Options Awards (Details) - Option Awards shares in Thousands | 3 Months Ended |
May 03, 2024 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Option awards outstanding at beginning of period | shares | 511 |
Number of Shares, Granted | shares | 0 |
Number of Shares, Exercised | shares | 0 |
Number of Shares, Forfeited | shares | 0 |
Number of Shares, Expired | shares | (294) |
Number of Shares, Option awards outstanding at end of period | shares | 217 |
Weighted Average Grant Date Fair Value, Unvested option awards at beginning of period | $ / shares | $ 16.08 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Exercised | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Expired | $ / shares | 18.1 |
Weighted Average Grant Date Fair Value, Unvested option awards at end of period | $ / shares | $ 13.34 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Information about Option Awards Vested and Expected to Vest (Details) - Option Awards $ / shares in Units, $ in Thousands | 3 Months Ended |
May 03, 2024 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Option Awards, Option Awards vested and expected to vest | shares | 217,000 |
Option Awards, Option Awards exercisable | shares | 91,000 |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest | 7 years 3 months 3 days |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest, Option Awards exercisable | 5 years 6 months 18 days |
Weighted Average Exercise Price, Option Awards vested and expected to vest | $ / shares | $ 13.34 |
Weighted Average Exercise Price, Option Awards exercisable | $ / shares | $ 16.84 |
Aggregate Intrinsic Value, Option Awards vested and expected to vest | $ | $ 568 |
Aggregate Intrinsic Value, Option Awards vested and expected to vest, Option Awards exercisable | $ | $ 142 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 15, 2024 | Jun. 28, 2022 | May 03, 2024 | Apr. 28, 2023 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | $ 1,014,000 | $ 3,781,000 | ||
Retained Earnings | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | 143,000 | |||
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 | |||
Purchases and retirement of common stock | 3,772,000 | |||
2022 Share Repurchase Program | Retained Earnings | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | $ 0 | |||
2024 Share Repurchase Program | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 25,000,000 | 24,000,000 | ||
Stock repurchase program expiration date | Mar. 31, 2026 | |||
Purchases and retirement of common stock | 1,013,000 | |||
2024 Share Repurchase Program | Retained Earnings | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Purchases and retirement of common stock | $ 100,000 |
Stockholder' Equity - Summary o
Stockholder' Equity - Summary of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Equity Class Of Treasury Stock [Line Items] | ||
Total cost | $ 1,014 | $ 3,781 |
2024 Share Repurchase Program | ||
Equity Class Of Treasury Stock [Line Items] | ||
Number of shares repurchased | 85 | |
Total cost | $ 1,013 | |
Average per share cost | $ 11.88 | |
2022 Share Repurchase Program | ||
Equity Class Of Treasury Stock [Line Items] | ||
Number of shares repurchased | 430 | |
Total cost | $ 3,772 | |
Average per share cost | $ 8.77 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | May 03, 2024 | Feb. 02, 2024 | Apr. 28, 2023 | Jan. 27, 2023 |
Other Liabilities, Current [Abstract] | ||||
Deferred gift card revenue | $ 35,119 | $ 35,604 | $ 34,222 | $ 33,029 |
Accrued employee compensation and benefits | 17,900 | 28,449 | 15,204 | |
Reserve for sales returns and allowances | 16,886 | 21,560 | 17,755 | |
Deferred revenue | 9,340 | 4,314 | 6,019 | |
Accrued property, sales and other taxes | 7,904 | 8,795 | 7,945 | |
Other | 5,032 | 10,250 | 7,071 | |
Total Accrued expenses and other current liabilities | $ 92,181 | $ 108,972 | $ 88,216 |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Assets and Liabilities - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | May 03, 2024 | Feb. 02, 2024 | Apr. 28, 2023 |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | $ 256,750 | $ 260,000 | $ 240,625 |
Fair Value | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | $ 257,270 | $ 258,139 | $ 227,109 |
Fair Value Measurements of Fi_4
Fair Value Measurements of Financial Assets and Liabilities - Additional Information (Details) - USD ($) | May 03, 2024 | Feb. 02, 2024 | Apr. 28, 2023 |
Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Nonfinancial assets fair value disclosure | $ 0 | $ 0 | $ 0 |
Nonfinancial liabilities fair value disclosure | 0 | 0 | 0 |
Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Restricted cash fair value | $ 2,500,000 | $ 2,000,000 | $ 2,100,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Income Tax Examination [Line Items] | ||
Effective income tax expense (benefit), percentage | 19.60% | 24.10% |
U.S. federal statutory rate | 21% | 21% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
May 03, 2024 Channel Segment | |
Segment Reporting [Abstract] | |
Number of external reportable segment | Segment | 1 |
Number of distribution channels for revenue reporting purposes | Channel | 5 |
Segment Reporting - Summary of
Segment Reporting - Summary of Net Revenue by Distribution Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 285,471 | $ 309,558 |
US eCommerce | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 170,532 | $ 177,702 |
Percentage of net revenue | 59.70% | 57.40% |
International | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 24,968 | $ 25,392 |
Percentage of net revenue | 8.80% | 8.20% |
Outfitters | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 42,677 | $ 73,969 |
Percentage of net revenue | 15% | 23.90% |
Third Party | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 37,454 | $ 22,989 |
Percentage of net revenue | 13.10% | 7.40% |
Retail | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 9,840 | $ 9,506 |
Percentage of net revenue | 3.40% | 3.10% |
Revenue - Disaggregated of Reve
Revenue - Disaggregated of Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 285,471 | $ 309,558 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 257,507 | 280,404 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 25,308 | 25,877 |
Other Geographical Location | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 2,656 | $ 3,277 |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue beginning of period | $ 4,314 | $ 7,484 |
Deferred revenue recognized in period | (4,100) | (7,270) |
Revenue deferred in period | 9,126 | 5,805 |
Deferred revenue end of period | $ 9,340 | $ 6,019 |
Revenue - Reconciliation of Gif
Revenue - Reconciliation of Gift Card Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 03, 2024 | Apr. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Balance as of beginning of period | $ 35,604 | $ 33,029 |
Gift cards sold | 15,056 | 15,616 |
Gift cards redeemed | (14,193) | (13,635) |
Gift card breakage | (1,348) | (788) |
Balance as of end of period | $ 35,119 | $ 34,222 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | May 03, 2024 | Oct. 27, 2023 | Apr. 28, 2023 |
Accrued Expenses and Other Current Liabilities | |||
Deferred Revenue Arrangement [Line Items] | |||
Refund liabilities | $ 16.9 | $ 21.6 | $ 17.8 |